The main exports to measure the operating conditions in the markets of Istanbul Chamber of Industry of Turkey's manufacturing sector (ICI) Turkey Manufacturing Sector Export Climate Index, but fell in September to 51,9 in the demand in export markets continue to signal that the stronger. Thus, after the deterioration period caused by the Covid-19 outbreak, the export climate of manufacturers improved for the third month in a row.
Economic activity in Germany and the UK, the two largest export markets for Turkish manufacturers, continued to grow strongly in September, while the recovery outlook continued in the US. A modest increase in demand was observed in Italy, while France and Spain showed signs of deterioration in demand conditions. Economic activity in the Middle East also generally followed a positive trend.
Press Release - Istanbul Chamber of Industry, the main export market of Turkey's measure activity conditions in the manufacturing sector (ICI) announced the results of the Turkey Manufacturing Sector Export Climate Index in September 2020 period. All figures measured above the threshold value of 50,0 in the index indicate an improvement in export climate, while values below 50 indicate deterioration.
The Istanbul Chamber of Industry Exports measured as 52,4 in August Turkey Manufacturing Climate Index was 51,9 in September, continued to signal that the stronger demand in export markets, but declined. Thus, after the deterioration period caused by the coronavirus (Covid-19) epidemic, the export climate of manufacturers improved for the third month in a row.
While the recovery continued after the epidemic contraction in many main export markets, there were signs of a resumption of weakening in some regions. As of the end of the third quarter, one of the markets where the recovery outlook continued was the USA. Economic activity in this country increased strongly and growth generally continued at a pace close to the previous month. When looking at other North American countries, manufacturing output in Canada saw a significant increase, at the fastest pace since August 2018. In Mexico, manufacturing industry production continued to decline.
There was a complicated picture in Europe. Economic activity in Germany and the United Kingdom, the two largest export markets for Turkish manufacturers, continued to grow strongly in September. A moderate increase in demand was observed in Italy. In contrast, data from France and Spain pointed to deteriorating demand conditions. While economic activity in France declined for the first time in the last four months, production in Spain fell for the second month in a row, and the decline was the highest since May.
Middle East has shown a positive trend
Economic activity in the Middle East generally showed a positive trend. Production increases were recorded in the United Arab Emirates, Egypt, Saudi Arabia and Qatar. Lebanon, on the other hand, continued to be adversely affected by the decline in economic activity.
Among the BRIC countries with a share of 3 percent in Turkish manufacturing exports, the economy that recorded the fastest expansion in September was India, where production moved back to its growth zone after a six-month break. Strong recovery was also observed in the manufacturing sectors of Brazil, Russia and China (September data for the Chinese services sector will be released on October 9).
Istanbul Chamber of Industry, Turkey Export IHS in the assessment of Climate Index, Markit Economics Director Andrew Harker, said: "studies recovery continuing in the main export markets of Turkish manufacturing sector, will support the company 's sales in foreign markets positively. However, there are signs that deterioration has resumed in some areas. Due to concerns over the rebounding of the Covid-19 outbreak, uncertainty regarding the direction of export demand for the rest of 2020 is still quite high. "