The June Results of ICI Turkish Export Climate Index Were Announced

• 08.07.2020
• News

Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which measures the operation conditions in the main export markets of Turkish manufacturing industry realized as 47,5 with a strong increase in June and pointed out that the shrinkage in the demand conditions of the Turkish manufacturers got close to the end. With the recovery experienced in many markets across the world based on loosening the curfew restrictions because of Covid-19, the index was recorded at the highest level of the last four months. 

While the shrinkages in the production of Germany, United Kingdom, Italy and Spain that constitute nearly 26 percent of the export of Turkish manufacturing industry realized in a smaller rate, France which is amoung the main export markets in the economical activity demonstrated the first increase of the last four months in addition to UAE which demonstrated the first increase of the last six months. Recession in the economic activity of USA lost considerable level of speed for the second month subsequently.

June 2020 results of Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which measures the operation conditions of Turkish manufacturing industry in the main export markets were announced. All figures measured over 50,0 which is the threshold value in the index point out to improvement while those measured under 50 point out to deterioration.

According to the data announced as independent on the seasonality effects, Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which had been measured as 34,1 in May realized as 47,5 with a strong increase in June and pointed out that the shrinkage in the demand conditions of the Turkish manufacturers got close to the end.

 The index was recorded at the highest level of the last four months. The recovery experienced in many markets across the world based on loosening the curfew restrictions because of Covid-19 enabled the export index to approach to the threshold value. In several countries where the pandemic curve was in the further phases, especially in China, it was observed that the production entered into the growth area swiftly. The economic activity demonstrated the first increase of the last four months in French and that of the last six months in United Arab Emirates that take place among the main export markets of Turkish manufacturers.

Shrinkage in the four main export markets realized in a smaller rate

PMI surveys pointed out to increases in the activities in the markets constituting nearly 9 percent of the export of Turkish manufacturing industry in general. In other markets, shrinkage lost speed and as in considerable level in some. Since the curfew restrictions in the Europe continued to be loosen and economic conditions approached to the normal status, shrinkages in the production of Germany, United Kingdom, Italy and Spain which constitutes nearly 26 percent of the export of Turkish manufacturing industry realized in lower levels. Recession in the economic activity of USA where the shrinkage had been realized in the most moderate level since February lost considerable level of speed for the second month subsequently.

It was seen that recovery in many economy is ongoing today; however, other economies were observed to be negatively impacted by the pandemic and sharp shrinkage in the economic activity maintained its existence. The highest decreases in the production during the June were observed in Indonesia, Mexico and Mozambique. On the other hand, these economies constitutes very small part of the total demand towards the export of Turkish manufacturing industry.

Andrew Harker, Economy Director of IHS Markit who evaluated the Istanbul Chamber of Industry Turkish Export Climate Index expressed that: “While it is obviously felt that the sharpest part of the shrinkage caused by Covid-19 has been left behind, it is seen that the firms can start to evaluate transmission to the re-growth. That the main export markets either entered into the expansion area swiftly or approached to the balancing point put forward a positive development for the exporters of Turkish manufacturing industry. If the pandemic does not gain speed again, it might be possible for export demand to enter into the recovery path during the second half of the year.”