ICI Türkiye Export Climate Index Rose to 53.1 in April
- 08.05.2023
- News
Measuring the operating conditions in the key export markets of the Turkish manufacturing sector, the Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index rose to 53.1 in April, above the 50.0 no-change mark for the third month running. It pointed to a continued improvement in export climate. This strong improvement marked the highest level in nearly a year.
Production increased in Germany, the largest export market for Turkish manufacturers, in April and reached the highest pace of the past year. Similarly, the growth rate reached its highest level in the last year in the United Kingdom and in the United States. Production declined in the Netherlands and Poland. United Arab Emirates (UAE) and Qatar recorded a significant expansion while China maintained its recovery trend. Russia also recorded improvements in production.
The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index, which measures the operation conditions in the key export markets of the Turkish manufacturing sector, announced the results of the index for April 2023. In the index, the figures above the 50.0 no-change mark signals an improvement in the export climate, while the figures below signals a deterioration.
The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index rose to 53.1 in April, above the 50.0 no-change mark for the third month running, pointing to a continued improvement in export climate. This strong improvement marked the highest level in nearly a year.
The highest pace of the past year in Germany, the United Kingdom and the US
In Germany, the largest export market for Turkish manufacturers with a share of 9 percent, output increased in April and reached the highest pace of the past year, indicating a recovery after the slowdown at the beginning of the year. Similarly, the growth rate reached its highest level in the last year in the United Kingdom, while economic activity saw its strongest increase in 11 months in the United States.
Although France, Italy and Spain remained in the growth zone in the first month of the second quarter, signals of weak demand in Europe's manufacturing sector are clouding the outlook. Outlook declined in the Netherlands, Austria, Poland and the Czech Republic in April.
Strong growth in the UAE and Qatar, recovery in China and improvement in Russia
Some regions of the Middle East maintained a trend in April. United Arab Emirates (UAE) recorded a significant expansion in non-oil economic activity and the growth rate reached its highest level in the last six months. The production accelerated slightly in Saudi Arabia, while Qatar maintained strong growth. The continued decline in economic activity in Egypt and Lebanon was recorded as a relatively adverse development.
Demand remained weak in some regions of Sub-Saharan Africa. Production declined in South Africa and Kenya, while the easing of the cash crisis led to a recovery in economic activity in Nigeria.
The growth that started in China at the beginning of this year as restrictions related to the pandemic were relaxed continued in April, and the country's economy maintained its recovery trend. Production showed a strong increase, despite a slight slowdown in pace.
India, where economic activity has been growing at the highest rate since July 2010, maintained its position as one of the countries with the most robust growth performance among the economies covered by the survey. Brazil and Russia also recorded improvements in production.
Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said:
"Production increased in the four largest export markets of the Turkish manufacturing sector at the beginning of the year's second quarter. This provided a strong foundation for the fastest recovery in export climate in nearly a year. The much healthier outlook of the export markets compared to the beginning of the year will support the revitalization of the manufacturing sector in the second quarter.”