The May Results of ICI Turkish Export Climate Index Were Announced

• 08.06.2020
• 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 experienced a strong increase and realized as 34,1 in May; however, it was recorded in the second weakest level since January 2002 when the data series was launched. Strong deterioration in export climate resulted from the continuance of negative impacts of Covid-19 pandemic on the great majority of the global economy.

China became the only country which experience production increase within 44 countries included in the index calculations. Major-scaled trade partners of Turkish manufacturers in Europe stayed in the shrinkage area apparently in May; however, decreases lost speed compared to the record levels in April. Production in USA recorded a moderate shrinkage compared to the April. Economies of Middle East approached to gain stability.

May 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 Turkish Manufacturing Industry Export Climate Index showed that demand conditions of Turkish manufacturers in the export market continued to deteriorate apparently in May. Index recorded in the record decrease by 19,1 in April realized as 34,1 with a fast increase; however, it was recorded in the second weakest level since January 2002 when the data series was launched. Strong deterioration in export climate resulted from the continuance of negative impacts of Covid-19 pandemic on the great majority of the global economy.

The Only Country to Recod Increase is China

China became the only country which experience production increase in May within 44 countries included in the index calculations. In China which continues to reduce the negative impacts of pandemic, second growth was recorded for the first time in the last four months. However, the share of China out of Turkish export was limited to 1 percent. Major-scaled trade partners of Turkish manufacturers in Europe stayed in the shrinkage area apparently in May; however, decreases lost speed compared to the record levels in April. In USA where a similar scene was observed, production recorded a moderate shrinkage compared to April. On the other hand, the decrease was experienced in the second highest speed since the global financial crisis.

Middle East is close to obtain stability

Middle Eastern economies approached to gain stability generally in the middle of the second quarter of the year. Slowdown in economic operations in Saudi Arabia experienced in the lowest rate of the last three months and shrinkage in United Arab Emirates lost speed considerably. Compared to the high level experienced in the previous month in Egypt, more limited decrease was recorded. Many countries stayed in the shrinkage area considerably in May which was a situation experienced in the countries where the harsh limitations were maintained to be applied to prevent Covid-19 pandemic to spread. The most considerable reductions were experienced in Singapore, India and Indonesia.

Andrew Harker, Economy Director of IHS Markit who evaluated the Istanbul Chamber of Industry Turkish Export Climate Index expressed that:

“Even though the shrinkage in various economies of the world was still considerable in May, it lost speed. And it pointed out to a more positive view for Turkish manufacturing sector’s exporters. Production which entered into growth area in China brought hope that the same development might be experienced in more major-scaled trade partners in the following periods of the year. On the other hand, continuance of limitations and low rate of demand point out that challenging conditions might be experienced by exporters in the near period.

You can access to the all May 2020 reports of Istanbul Chamber of Industry Turkish Manufacturing Climate Index.