ICI Türkiye Export Climate Index ticks up to 51.3 in August

• 08.09.2024
• News

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index was above the 50.0 no-change mark for the eight month running in August. The index rose to 51.3 from 50.8 in July. In August, economic activity increased in most of the main export markets of Turkish manufacturers. Output rose strongly in the US, while Germany remained in the contraction zone. 

The US continued to be one of the main sources of recovery in demand. Output in France and Italy, which together account for 9 percent of the Turkish manufacturing export market, entered into growth zone again. The weak outlook in Central and Eastern Europe continued in the middle of the third quarter, while supportive demand conditions persisted in most parts of the Middle East in general. Among all countries and regions monitored under the PMI survey, India recorded the strongest output growth in August.

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index, which measures the operating conditions in the key export markets of the Turkish manufacturing sector, released the results of the index for August 2024. In the index, the figures above the 50.0 no-change mark signals an improvement in the export climate, while the figures below signals deterioration. The Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index was above the 50.0 no-change mark for the eight month running in August. The index rose to 51.3 from 50.8 in July, indicating a marked strengthening in the export climate by the middle of the third quarter.

THE US MANUFACTURING ROSE STRONGLY IN AUGUST 

In August, economic activity increased in most of the main export markets of Turkish manufacturers. However, Germany, the largest market, contracted for the third consecutive month. This contraction was significant and at the highest rate since March. The US continued to be one of the main sources of recovery in demand. Output rose strongly in August and accelerated compared to July. In the United Kingdom, the pace of growth in economic activity strengthened to the highest level in four months. Output in France and Italy, which together account for 9 percent of the Turkish manufacturing export market, entered into growth zone again. It was especially noteworthy that output in France increased for the first time in 15 months, with the highest pace since March 2023. Economic activity in Spain, another major economy of the Eurozone, also maintained its strong upward trend.

INDIA RECORDED THE STRONGEST OUTPUT GROWTH 

The weak outlook in Central and Eastern Europe continued in the middle of the third quarter. Manufacturing output contracted in Romania, Poland, Czechia and Austria. Meanwhile, Russia recorded a moderate increase in economic activity for the second consecutive month. In general, supportive demand conditions persisted in most parts of the Middle East. Non-oil economic activity in the United Arab Emirates and Saudi Arabia continued to expand rapidly in August. 

 Qatar continued to grow, while Egypt showed improvement for the first time in three years. Output in Lebanon however continued to contract. Among all countries and regions monitored under the PMI survey, India recorded the strongest output growth in August. Another extreme was seen in Myanmar, which recorded the fastest decline in output in 20 months.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “August was generally positive for Turkish manufacturers' key export markets. The most notable exception to this trend was Germany, which remained in contraction zone, which also played a role in the weakness in Central and Eastern Europe. Exporters will be looking for further strengthening in major export markets such as the US and the UK, as well as the continuation of the positive trend in France and Italy.”

*You can find attached the entire Istanbul Chamber of Industry Türkiye Export Climate Index August 2024 report.