The September Results of ICI Turkish Export Climate Index Were Announced

• 08.10.2020
• News

 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 recessed to 51,9 in September and continued to give the signals that demand conditions in export markets gained strength. Therefore, export climate of manufacturers showed recovery for the third month in a row following the deterioration period caused by Covid-19 pandemic.

The economic activity in Germany and United Kingdom which are the largest two export markets of Turkish manufacturing industry continued to grow strongly in September as well, the recovery continued in USA. While a moderate increase in demand was observed in Italy, deterioration signals were seen in demand conditions in France and Spain. Economic activity showed a positive trend in general in the Middle East.

September 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.

May 2020 results of Istanbul Chamb 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.

Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which was measured as 52,4 in August recessed to 51,9 in September and continued to give the signals that demand conditions in export markets gained strength. Therefore, export climate of manufacturers showed recovery for the third month in a row following the deterioration period caused by Coronavirus (Covid-19) pandemic.

Following the pandemic-driven recession in many main export markets, the recovery maintained its existence and some signals showing that weakening broke out in some regions once again were observed. One off the markets where the recovery image maintained its existence from the end of the third quarter was USA: Economic activity increased strongly in the country and growth continued in a similar pace with that of the previous month generally. When the other North American countries were examined, manufacturing recorded a significant increase in Canada and this increase was realized in the highest speed since 2018. Production of manufacturing industry continued to decrease in Mexico.

And Europe had a complicated view in this regard. The economic activity in Germany and United Kingdom which are the largest two export markets of Turkish manufacturing industry continued to grow strongly in September as well. And a moderate increase in demand was observed in Italy. On the other hand, the date from France and Spain pointed out that the demand conditions got deteriorated. While the economic activity in France recessed for the first time in the last four months, the production decreased for the second month in a row in Spain and realized in the highest level since May.

Middle East showed a positive trend

Economic activity showed a positive trend in general in the Middle East. Production increases were noted in United Arab Emirates, Egypt, Saudi Arabia and Qatar. And Lebanon continued to be impacted by the decrease in the economic activity in negative direction.

Of the BRIC countries with 3 percent share within Turkish manufacturing industry export, India became the economy to realize the fastest expansion in September which re-entered to the growth zone after an interval for six months in the production. Strong recovery signals were noted in the manufacturing sectors of Brazil, Russia and China (September data of Service Sector of China will be announced on 9th September).

Andrew Harker, Economy Director of IHS Markit who evaluated the Istanbul Chamber of Industry Turkish Export Climate Index expressed that: “Ongoing recoveries in main export markets of Turkish manufacturing industry will support the sales of firms in international markets in the positive direction. On the other hand, there are some signals that some regions started to deteriorate again. Because of the concerns about gaining strength of Covid-19 pandemic, uncertainties on the direction of export demand during the rest of 2020 are still significantly high.”