May 10, 2024
The Istanbul Chamber of Industry Türkiye Manufacturing Sector Export Climate Index rose to 52.3 in April 2024 from 51.6 in March. Demand conditions in export markets continued to strengthen at the start of the second quarter. The improvement in the export climate was significant and at the highest rate since May 2023. With the marked improvement in April, the strengthening trend in export demand conditions reached a fourth month.
Output increased in most of the major export markets of Turkish manufacturers in April, while data signaled that the economic contraction in Germany and France is nearing an end. Among the top 10 export markets, accounting for 46 percent of Turkish manufacturers’ total export volume, eight economies, led by the United Arab Emirates (UAE), expanded in April. Output in the United Kingdom and Spain posted strong gains, while economic activity in the United States, Russia and Italy maintained its upward trend.
The results of the Istanbul Chamber of Industry (ISO) Türkiye Manufacturing Sector Export Climate Index for April 2024, which measures the operating conditions of the Turkish manufacturing sector in its main export markets, were announced. All figures measured above the threshold value of 50.0 in the index indicate an improvement in the export climate, while values below 50.0 indicate deterioration. The index rose for the sixth consecutive month in April to 52.3, its highest reading in nearly a year. With the significant improvement in April, the strengthening trend in export demand conditions reached the fourth month.
UAE ACHIEVES HIGHEST GROWTH RATE
Among the top 10 export markets, accounting for 46 percent of the total export volume of Turkish manufacturers, eight economies, led by the United Arab Emirates (UAE), recorded expansion in April. The UAE also recorded the highest growth rate among all economies covered by the report, followed by Saudi Arabia and India. Strong gains were recorded in the output of the United Kingdom and Spain in April, with growth in both accelerating to the fastest pace in a year. The Netherlands recorded the strongest expansion in manufacturing activity in nearly two years, while Romania recorded the first increase in the 10-month survey history. In the US, Russia and Italy, economic activity continued to increase in April, but growth slowed compared to March.
CZECH REPUBLIC RECORDED THE SHARPEST CONTRACTION
At the start of the second quarter, the two countries among Türkiye’s 10 largest export markets that failed to register production growth were Germany and France, which together accounted for around 13 percent of exports. However, the economic contraction in both countries almost came to a halt in April. Production declines in the two countries were the mildest in 10 and 11 months, respectively. On the other hand, the improvement in the overall picture did not apply to all economies surveyed, with output continuing to decline markedly in some regions. The sharpest contraction was observed in the Czech Republic in April, followed closely by Egypt and Austria.
Commenting on the Istanbul Chamber of Industry Türkiye Export Climate Index, Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “Demand conditions in Turkish manufacturers’ main export markets improved more broadly in April, with Germany and France showing signs of emerging from contraction. This was a positive signal for firms to receive new export orders in the coming months.”
Source: Istanbul Chamber of Industry Türkiye
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