ICI Türkiye Export Climate Index posts 49.1 in August
- 08.09.2023
- News
The Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index dipped below the 50.0 no-change mark in August, posting 49.1. As such, the index pointed to a slight decline in the demand climate for Turkish manufacturing exporters, the first in seven months. Falling business activity across a range of European economies was a key factor behind the deterioration in the export climate.
Germany, the UK, Italy, France and Spain all recorded reductions in output during August. In the US, the second-largest export market for Turkish manufacturers, output growth was sustained midway through the third quarter of the year. The UAE, Saudi Arabia and Qatar all continued to record sharp increases in business activity in August. All of the BRIC economies posted increases in activity.
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 2023. 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 dipped below the 50.0 no-change mark in August, posting 49.1 from 50.3 in July. As such, the index pointed to a slight decline in the demand climate for Turkish manufacturing exporters, the first in seven months. Falling business activity across a range of European economies was a key factor behind the deterioration in the export climate.
Five of the top six export destinations recorded reductions in output
Germany, the UK, Italy, France and Spain - which are five of the top six export destinations for Turkish manufactured goods - all recorded reductions in output during August. The fall in Germany was marked and the sharpest since May 2020. Rates of reduction also quickened in France and Italy, while the UK and Spain posted renewed declines. The US is the second-largest export market for Turkish manufacturers and accounts for around 7% of exports. Here, output growth was sustained midway through the third quarter of the year. That said, the latest increase in activity was only marginal and the softest in six months.
The UAE, Saudi Arabia and Qatar all continued to record sharp increases
Trends across parts of the Middle East were more positive than those in Europe. The UAE, Saudi Arabia and Qatar all continued to record sharp increases in business activity in August. Elsewhere in the region, Egypt and Lebanon posted reductions in output. India was also one of the key growth drivers again in August, but with only 0.5% of Turkish manufacturing exports destined for there, the impact on the overall export climate was modest. All of the BRIC economies posted increases in activity, with growth in Russia hitting a five-month high. The sharpest reduction in output in the latest survey period was seen in the Czech Republic as European manufacturing suffered.
Marked reductions in manufacturing production were also registered in Poland and Austria. Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “Last month we noted concerns that the export environment for Turkish manufacturers could be set for a deterioration, and August saw this come to pass. Europe was again the main source of weakness, while the US just about kept its head above water. As such, there is very little growth coming from key export markets, with the exceptions of the UAE and to a lesser extent Russia.” You can find attached the Istanbul Chamber of Industry Türkiye Export Climate Index August 2023 reports.