ICI Türkiye Export Climate Index Posts 51.1 in February

• 08.03.2024
• News

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index rose to 51.1 in January from 50.6 in December, signalling moderate improvement in demand conditions. There was a strong increase in economic activity in the United States, Türkiye's second-largest export market, while expansion accelerated in many important export markets in Europe.

The Export Climate Index rose to the highest rate of the last eight months. The United Arab Emirates (UAE) recorded the fastest growth in economic activity among the countries monitored under the scope of the survey. As for the other Middle Eastern regions, growth accelerated in Saudi Arabia and Qatar, while a contraction was observed in Egypt and Lebanon. In Russia, output continued to grow in February, albeit at the slowest pace in the last 13 months.

The Istanbul Chamber of Industry (ICI) Turkey 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 February 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. The Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index rose to 51.1 in February from 50.6 in January, indica indicating a second consecutive month of improvement in demand conditions in export markets. Although the strengthening in the export climate was moderate, it was the most significant since June of last year. 

EXPANSION IN EUROPEAN EXPORT MARKET ACCELERATES

The February data indicated a strong increase in economic activity in the United States, Türkiye's second-largest export market. It recorded the highest growth rate of the last eight months. Expansion accelerated in many important export markets in Europe, and signs of recovery continued after a weak period. Production growth in the United Kingdom, Italy and Spain gained momentum in February.

On the other hand, Germany and France continued their trend of contraction in February. The ongoing weakness in these two economies, which account for about 13% of Turkish manufacturing industry exports, limits the overall improvement in the export climate. Manufacturing production in Romania, which accounts for approximately 3% of the export market and was just added to the dataset, showed a sharp decline in February, as it did in the previous month. 

FASTEST GROWTH IN ECONOMIC ACTIVITY IN UAE

Among the countries monitored under the scope of the survey, the United Arab Emirates (UAE) recorded the fastest growth in economic activity. It is the highest since June 2019. As for the other Middle Eastern regions, growth accelerated in Saudi Arabia and Qatar, while a contraction was observed in Egypt and Lebanon. In Russia, output continued to grow in February, albeit at the slowest pace in the last 13 months. Other BRICS economies also remained in the expansion zone in the middle of the first quarter.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “The recent recovery in the foreign demand conditions of Turkish manufacturers gained momentum in February and the signs of recovery began to be seen more clearly in many European markets, in addition the the U.S. market. The continuing strength of demand in the Middle East means that opportunities are expanding for manufacturers. The main exceptions to this positive trend in February were Germany and France, where challenging production conditions persisted.”

*You can find attached the entire Istanbul Chamber of Industry Türkiye Export Climate Index February 2024 report.