ICI Turkey Export Climate Index for March Released
Measuring the operating conditions in the key export markets of the Turkish manufacturing sector, the Istanbul Chamber of Industry (ICI) Turkey Manufacturing Export Climate Index rose to 54.7 in March, signalling a solid improvement in demand conditions in manufacturing export markets. A stronger export climate was recorded for the second month running with the highest rate of the last 33 months.
Manufacturing production ramped up in a number of countries, supporting marked expansions in total activity in key destinations such as Germany, the UK and US, which combined account for some 23% of Turkish manufacturing exports. Output in France was unchanged, thereby ending a six-month sequence of contraction. And as for the BRIC countries, the business activity increased in Russia, India and China, except for Brazil which saw a harsh decrease.
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 March 2021. 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 Turkey Manufacturing Export Climate Index rose to 54.7 in March from 51.5 in February, marking a significant increase. It also signalled a strong improvement in manufacturers’ demand conditions in export markets. A stronger export climate was recorded for the second month running with the rate of improvement the sharpest since June 2018.
As has been the case for the last two months of 2021 so far, the US, which accounts for 6% of Turkish manufacturing exports, posted a sharp expansion of business activity in March. Furthermore, the rate of growth was the steepest since August 2014. A number of other key markets also posted marked improvements in
demand conditions at the end of the first quarter, with growth often centred on the manufacturing sector. Germany posted the fastest rise in output for just over three years, while the UK returned to growth, registering a sharp rise in activity that was the steepest since August last year. On the other hand, some other key export markets saw demand remain fragile amid coronavirus disease 2019 (COVID19) restrictions. France posted a horizontal trend of output after six months of decline. Activity in Spain stabilised for the first time in eight months. Growth was recorded for the second month running in Italy, but the rate of expansion remained modest. Outbreaks of COVID-19 continued to cause challenging demand conditions in a number of markets.
Activity decreased in Brazil, expanded in China
In Brazil, activity decreased to the greatest extent since June 2020. However, the other BRIC countries performed better. Russia, India and China posted increases in overall activity. There were some signs of strengthening demand in the Middle East, with marked increases in activity in Saudi Arabia, the UAE and Qatar. Egypt and Lebanon, however, posted further reductions in output during March. A number of manufacturing sectors posted sharp growth of production at the end of the first quarter, with steep expansions seen in the Netherlands, Austria and Taiwan.
Commenting on the Istanbul Chamber of Industry Turkey Manufacturing Export Climate Index, Andrew Harker, Economics Director, IHS Markit, said:
“The end of the first quarter saw manufacturing production ramp up in a range of countries, with particularly strong growth in some of Turkey’s key export markets. These improvements were recorded in spite of severe supply-chain disruption around the world, with widespread difficulties securing raw materials reported. With the export climate improving to the greatest extent in 33 months, the near-term should provide opportunities for Turkish manufacturers to secure sales, with the caveat that the COVID-19 pandemic still has the ability to stifle growth should outbreaks occur in key markets.”