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.”

Source: Istanbul Chamber of Industry
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According to the news of Istanbul Chamber of Industry, Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index October, the leading indicator measuring the activity conditions of Turkish manufacturing sector on main export markets increased to 50,3 in December and pointed out to a strong improvement in export climate of manufacturing sector at the end of the year. Economic activity which moved to regrowth area in Germany which is the biggest export market of Turkish manufacturing industry played a role in the improvement.

While indicators towards acceleration of growth in USA drew attention, economic activity continued to grow in Saudi Arabia and UEE; however, it lost speed. While economic activity shrank in Egypt, Lebanon, Qatar and other countries, economic activity increased in BRIC countries whose share within the export of Turkish manufacturing industry is around 3 percent.

The December 2019 results of Istanbul Chamber of Industry (ICI) Turkish Manufacturing Industry Export Climate Index which measures the activity conditions of Turkish manufacturing industry at main export markets were announced. All figures to be measured above 50,0 which is the threshold in index points out to the recovery while others to be measured under 50,0 point out to the deterioration in export climate.

According to the data announced as independent to seasonal impacts, ICI Turkish Manufacturing Sector Export Climate Index which was recorded as 50,1 in November increased to 50,3 in December and pointed out to a strong improvement in the export climate of manufacturing industry at the end of the year. One of the factors which resulted in improvement in December is the movement of economic activity in Germany which is the biggest export market of Turkish manufacturing sector into regrowth area. Growth in production had a moderate appearance and the increase experienced ended the 3-month-shrinkage period.

It was observed that demand conditions in other main markets continued to decline. While economic activity recessed for the fifth month in a row in United Kingdom, the decrease realized in the same speed with the November decrease. Production experienced decrease for the second month respectively in Italy. Recession had a moderate level and it was recorded in the highest rate since January 2019. Other important European markets which experienced decrease in the production were Holland and Poland. The increase in economic activity in Spain and France and acceleration of growth in Spain compared to the previous month were recorded as relatively positive developments.

Indicators towards growth in USA

Indicators towards the acceleration of growth in USA in December which is the biggest economy of the world drew attention. Expansion in economic activity in the country gained accelerated for the second month in a row and realized in the strongest level since April. Complicated signals were received from Middle Eastern economies. Economic activity continued to grow in Saudi Arabia and United Arab Emirates (UAE); however, speed loss was observed in both of them. Increase in production in UAE realized in the minimum rate since September 2011. Economic activity in Egypt, Lebanon, Qatar and other countries showed shrinkage. However, the decrease in three economies realized in a more moderate level compared to November.

BRIC countries had a generally positive appearance in this sense. Economic activity in four economies whose share within the export of Turkish manufacturing industry is around 3 percent experienced an increase. The strongest expansion realized in Indian economy where the growth reached the highest speed of the last five months. Just as experienced in the last months, the strongest increases in production in December were experienced in Sub-Saharan countries such as Nigeria and Uganda.

Source: Istanbul Chamber of Industry / link: http://www.iso.org.tr/news/ici-turkish-export-climate-index-december-results-were-announced/
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.