ICI Türkiye Export Climate Index Posts 49.7 in December
- 08.01.2024
- News
The Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index increased slightly to 49.7 in December from 49.5 in November. Although the index was lower than 50.0 for the fifth consecutive month, it was very slightly below the threshold value this month, indicating that demand conditions in export markets remained almost unchanged.
The ongoing economic weakness in the Eurozone had a negative impact on the export climate in general. While business activity contracted in Germany, France, Italy, the Netherlands and Austria, the countries in the growth zone were Spain, Ireland and Greece. The fastest growing economy in December was the United Arab Emirates (UAE). In December, the US's output growth trend reached its eleventh month. The United Kingdom, which moved into the growth zone again in November, also managed to close the year with expansion.
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 December 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 rose to 49.7 in December from 49.5 in November. Although the index was lower than 50.0 for the fifth consecutive month, it was very slightly below the threshold value this month, indicating that demand conditions in export markets remained almost unchanged.
WEAKNESS IN THE EUROZONE AFFECTS NEGATIVELY
The ongoing economic weakness in the Eurozone had a negative impact on the export climate in general. While business activity contracted in Germany, France, Italy, the Netherlands and Austria, the countries in the growth zone were Spain, Ireland and Greece. Looking at other European countries, manufacturing industry production decreased in Poland and the Czech Republic. Among the countries monitored within the scope of the survey, the most significant contraction occurred in the Czech Republic.
THE HIGHEST OUTPUT INCREASE IN THE LAST 6 MONTHS
The fastest growing economy in December was the United Arab Emirates (UAE). The country, which continues to be one of the main sources of export growth in the Turkish manufacturing sector, continued its strong growth and reached its five-month peak in November. As for the other Middle East countries, it was observed that output increased sharply in Saudi Arabia, but decreased in Qatar, Egypt and Lebanon.
In December, the US's output growth trend reached its eleventh month. Although the growth was moderate, it was at the highest rate since July of the previous year. The United Kingdom, which moved into the growth zone again in November, also managed to close the year with expansion. In December, its output growth was recorded at the highest pace in the last six months.
The strongest growth outside the Middle East in December was recorded in India. Besides India, the increase in business activity in Russia and China also accelerated compared to November. Among the BRIC countries, the only country that could not achieve growth was Brazil, keeping its business activity flat.
Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “Growth in important export markets such as the United Kingdom, the US and the Middle East reduced the effects of the weakness in the Eurozone in December. Thus, the deterioration in the export climate of Turkish manufacturers came to a halt. On the other hand, considering the Eurozone's share in Türkiye's exports, there will need to be an improvement in business conditions in this region for significant export opportunities to emerge.”
*You can find attached the entire Istanbul Chamber of Industry Türkiye Export Climate Index December 2023 report.