The April Results of ICI Turkish Export Climate Index Were Announced
Istanbul Chamber of Industry (ICI) Turkish Manufacturing Indıstry Export Climate Index which measures the operation conditions in the main export markets of Turkish manufacturing industry recessed to 19,1 in April because of Covid-19 pandemic which negatively impacted the economy in the world. Economic activity in all of the 44 countries which PMI data were collected recessed in April.
In the economic activities of Germany, United Kingdom, Italy, France and Spain which constitute nearly 30 percent of the export activities of Turkish manufacturing industry, severe decreases were experienced in unprecedented rates since 1990s when PMI surveys launched. The production in USA showed a decrease of record rate which was higher than that measured in the peak point of the global financial crisis.
April 2020 results of 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.
According to the data announced as independent on the seasonality effects, Istanbul Chamber of Industry Turkish Manufacturing Industry Export Climate Index realized in the low level of record rate for the second month successively in April. The index which was measured as 35,7 in March decreased to 19,1 in April and pointed out that the export climate deteriorated in a higher rate compared to the previous month. Based on the negative impacts of global coronavirus pandemic (Covid-19) on the economic activity in the whole world, demand conditions of Turkish manufacturing industry continued to deteriorate in April, as well. Economic activity in all of 44 country which PMI data were collected recessed and showed the global impact of the pandemic.
Severe decreases in five major markets
Many countries of the Europe are exposed to Covid-19 pandemic and curfews were applied in a widespread scale to prevent pandemic from being spread no longer. As the result, some of the decreases which were of highest levels in the production were experienced in European economies. In the economic activities of Germany, United Kingdom, Italy, France and Spain which constitute nearly 30 percent of the export activities of Turkish manufacturing industry, severe decreases were recorded and and unprecedented reductions were experienced since 1990s when PMI surveys launched.
A decrease of record level in the production of USA experienced in April. Shrinkage realized in a higher level than that of recorded in the peak point of the global financial crisis. Some of the most severe decreases in economic activity were experienced in the developing market economies where curfews were applied to prevent Covid-19 pandemic from being strengthened. India of which economic activity experienced a shrinkage in April after a moderate growth in March became an example of this situation. The sharpest shrinkage among all countries followed up realized in Uganda.
Chinese economy decreased in the lowest level
Some of the shrinkages with the lowest levels in economic activities were observed in the Middle East. Moderate shrinkages were experienced in Saudi Arabia, United Arab Emirates and Qatar relatively. However, production showed a decrease of record level at the beginning of the second quarter in all of these countries.
China of which share in the export of Turkish manufacturing industry was around 1 percent became the country where the production decreased in the lowest level in April. Even though the economic activity decreased for the third month successively, shrinkage realized in the lowest level of the given three months based on the relaxation in the curfew precautions.
Andrew Harker, Economy Director of IHS Markit who evaluated the Istanbul Chamber of Industry Turkish Export Climate Index expressed that: “Turkish Manufacturing Industry Export Climate Index in April showed the severe impacts of curfew which was applied to prevent Covid-19 from being spread on the global economy. Economic activity in all of the 44 countries included in the index recorded decrease. Unprecedented production losses were experienced in numerous markets. Turkish manufacturers hope that the worst part of the crisis left behind since April and the conditions will be improved gradually in the following months.”
You can access to the all April 2020 reports of Istanbul Chamber of Industry Turkish Manufacturing Climate Index.