ICI Türkiye Manufacturing Export Climate Index posts 50.6 in November

• 09.12.2024
• News

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index posted 50.6 in November, signalling the continuity of the improvement seen in demand conditions in export markets since the beginning of the year. However, it is down from 51.1 in October, indicating that the strengthening slowed down and remained limited. 

Economic activity in Germany, the largest market for Turkish manufacturers, declined for the sixth consecutive month, which is the most marked deterioration since February. France, Italy, the Netherlands and Romania also suffered output losses, while output growth in the UK and Spain continued, albeit at a slower pace. The US was again one of the main sources of improvement in foreign demand. Among the top 10 markets, the UAE performed strongly, while economic activity in Russia increased for the second month in a row. 

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 November 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 a deterioration.

Istanbul Chamber of Industry's Export Climate Index for the Turkish Manufacturing Sector remained above the 50.0 threshold value in November, indicating that the improvement in demand conditions in export markets since the beginning of the year continued. However, the index fell to 50.6 from 51.1 in October, indicating that the strengthening slowed down and remained limited. 

The US is one of the main sources of improvement

The US continued to be one of the main sources of recovery in foreign demand, as economic activity accelerated in November and recorded a significant increase, with growth at its highest level since April 2022. Another North American economy showing signs of strength was Canada, where output growth was moderate but at its fastest pace in 21 months.

Strong growth continues in the UAE and Saudi Arabia

In addition to the US, the United Arab Emirates (UAE) was another strong performer among the 10 major export markets for Turkish manufacturers in November with continued rapid growth. As for the rest of the Middle East, Saudi Arabia recorded the highest growth rate in 16 months and the fastest growth among the countries monitored in the survey. Similarly, a sharp increase in output was observed in Kuwait. 

Most significant deterioration in Germany since February

The most significant negative development for Turkish manufacturers was the performance of export markets in Europe. In Germany, the largest market, economic activity declined for the sixth consecutive month, which is the most marked deterioration since February. In the same period, output losses were recorded in France, Italy, the Netherlands and Romania. Output growth in the UK and Spain continued in November, albeit at a slightly slower pace. In the UK, output growth was the lowest since the beginning of the year. Lastly, Russia's economic activity increased for the second month in a row and at the fastest pace in the last eight months.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “There are contrasting trends in different parts of the global economy at present, impacting demand in the regions where Turkish manufacturing exports are focused. Despite the improved demand in the US and the Middle East, the weakness in Europe affects the general outlook negatively. The ability of firms to secure new business will likely be affected by which specific parts of the world they are looking to export to”.

You can find attached the Istanbul Chamber of Industry Türkiye Export Climate Index November 2024 reports.