The August Results of ICI Turkish Export Climate Index Were Announced

• 08.09.2020
• News

August 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 receded to 52,4; however, it gave signals that the strong recovery in the export climate maintained its existence and pointed out to a recovery for the second month successively in the demand conditions on export markets.

The fact that the production in USA which has a share for 5 percent out of the export of Turkish manufacturing sector realized in the highest speed of the last 17 months in August was promising. The production increase in France and Germany continued but lost speed compared to the previous month. Economic activity which showed a strong increase in United Kingdom, the second biggest export market for Turkish manufacturing products gained speed compared to the previous month but decreased in Italy and Spain.

August 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.

Even though the results of Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which had been measured as 53,0 in July receded to 52,4 in August, it gave signals that the strong recovery in the export climate maintained its existence and pointed out to a recovery for the second month successively in the demand conditions on export markets. Despite of the recovery in the overall image in August, differences were observed in different export markets. While several countries stayed in the shrinkage zone because of the Coronavirus (Covid-19) crisis, it was observed that the recovery which had just started lost speed in others. On the other hand, some countries experienced strength in their demand conditions.

The fact that the production in USA which is the largest economy of the world and has a share for 5 percent out of the export of Turkish manufacturing sector realized in the highest speed of the last 17 months in August was promising. Growth gained speed in Canada and the it experienced the strongest increase of the last two years in its manufacturing industry. There were some indicators that the recovery lost speed with the increase in the number of Covid-19 cases in many European economies. Following the increases of July, economic activity in Italy and Spain in August recorded decrease. The production increase in France and Germany continued but lost speed compared to the previous month. Economic activity which demonstrated a strong increase in the United Kingdom, the second largest export market of Turkish manufacturing products which entered to the growth zone after the Covid-19 restrictions gained speed compared to the previous month.

The highest rate of the last three and a half year in Russia

The growth of the private sector in Russia gained speed and realized in the highest level since January 2017. China where the production increased rapidly for the forth month in a row took place among the countries which strongly recovered following the Covid-19 crisis. Adverse tendencies were observed in other BRIC countries. In Brazil, economic activity returned to the growth zone thanks to the strong increase in the manufacturing industry. On the other hand, recession trend which maintained its existence in the production reached the fifth month in India. In August, the demand conditions in Middle East were weak generally. While non-oil production activity decreases slightly in Saudi Arabia, moderate improvements were observed in United Arab Emirates and Egypt.

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

“Demand conditions improved in export in August generally. However, data pointed out that the recovery is not regular and foreseeable. In many Euro Zones which leaded the recovery the last month, it lost speed in parallel with the increase in the number of Covid-19 cases. Therefore, while those which continued the growth were USA and UK, the production USA recorded the highest increase of the last one and half year. These developments reveal that Turkish firms will have to fight against the challenging changes experienced in the demand conditions of export markets for a while.”