The October Results of ICI Turkish Export Climate Index Were Announced
Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which measures the operation conditions in the main export markets of Turkish manufacturing industry recessed to 51.2 in October; however, it pointed out to a moderate refreshment by staying over the threshold value. Production in the USA which has a share of approximately 5 percent in Turkish manufacturing sector exports demonstrated a sharp increase. As the number of Covid-19 cases increased and demand decreased, production decreased in France, Italy, Spain, Ireland and Greece and growth slowed sharply in the UK. And the growth which strongly continued in Germany gained a slight speed in October.
October 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.
May 2020 results of Istanbul Chamb 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.
Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which was measured as 51.9 in October; however, it pointed out to a moderate refreshment by staying over the threshold value. One of the strong markets in October was the United States, with a share of approximately 5 percent in Turkish manufacturing exports. Production in the largest economy of the world increased sharply and recorded the fastest growth since May 2018.
The increase in the Covid-19 cases resulted in the decrease in demand in many countries. To contrary to the view in the USA, there were signs of weakening in Europe. Production decreased in France, Italy, Spain, Ireland and Greece and growth slowed sharply in the UK. The main source of power in the Europe became Germany where the growth continued strongly and gained a slight speed compared to September.
Middle East showed a positive trend
In the Middle Eastern countries consisting nearly 20 percent of Turkish manufacturing industry export rate, positive trends were observed at the beginning of the fourth quarter in general. While the economic activity in the United Arab Emirates, Saudi Arabia, Egypt and Qatar showed growth, the only country to have experienced a contraction was Lebanon.
Many other countries including the developing large economies stayed in the growth zone in September. Production in Brazil, China and India increased strongly and the growth rate increased compared to the previous period.
Sub-Saharan African countries experienced encouraging performances. The production of South Africa, one of the seven countries that make up 1 percent of Turkish manufacturing industry exports recorded an increase once again in the last one and half year and growth gained increase in Ghana, Kenya, Nigeria and Uganda. In countries where economic activity decreased, such as Mozambique and Zambia, contraction slowed down.
Andrew Harker, Economy Director of IHS Markit who evaluated the Istanbul Chamber of Industry Turkish Export Climate Index expressed that: “Thanks to the strong performances of the US and some developing large economies, the export climate of Turkish manufacturers continued to improve. On the other hand, in Europe, where the second wave of the Covid-19 pandemic occurred, the view seems to be worsened upon winter. The slowdown in the Europe which is a critical market for Turkish manufacturers points out that it might be more difficult to guarantee the export sales during the rest of 2020.”