Istanbul Chamber of Industry (ISO) Turkey Manufacturing Sector Export Climate Index reached 34.1 with a rapid increase in May.
With the written statement made by ISO, the results of the Turkish Manufacturing Sector Export Climate Index for the May 2020 period were announced.
According to the statement, all figures measured above the threshold value of 50 indicate an improvement in the export climate, while values below 50 indicate a deterioration. May data revealed that the demand conditions of Turkish manufacturers in the export markets continued to deteriorate significantly in May.
The index, which was recorded at a record low of 19.1 in April, made a rapid rise to 34.1, but was measured at the second weakest level since January 2002, when the data series began.
The sharp deterioration in the export climate was due to the continuing negative effects of the Covid-19 epidemic on a large part of the global economy.
Among the 44 countries included in the index calculations, China was the only country where production increased in May. Growth was recorded for the first time in the last four months in China, which continues to reduce the negative effects of the epidemic.
However, China’s share in Türkiye’s exports was limited to 1 percent.
While Turkish manufacturers’ larger trading partners in Europe remained in a significant contraction zone in May, declines slowed down from record levels in April.
In the USA, where a similar picture prevails, production recorded a more moderate contraction compared to April. Despite this, the decline was at the second fastest rate since the global financial crisis.
The Middle East is close to stabilization
According to data, Middle Eastern economies generally approached stabilization in the middle of the second quarter of the year.
While the slowdown in economic activities in Saudi Arabia was at the lowest rate in the last three months, the contraction in the United Arab Emirates also slowed down significantly.
In Egypt, a much more limited decrease was recorded, especially compared to the high rate in the previous month. While many countries remained in a significant contraction zone in May, this was especially the case for countries where strict restrictions continued to prevent the spread of the Covid-19 epidemic.
The most significant shrinkages occurred in Singapore, India and Indonesia.
The most significant shrinkages occurred in Singapore, India and Indonesia.
HS Markit Director Andrew Harker, whose views were included in the statement, said:
“While the contraction in many economies around the world in May was still evident but slowed down, this pointed to a slightly more positive outlook for Turkish manufacturing sector exporters. The fact that production in China has moved into the growth zone indicates that the same development may occur in larger trading partners later in the year.” “It gave hope. However, the continuation of restrictions and the low course of demand indicate that difficult conditions for exporters will continue in the near term.”
Source: https://www.dunya.com/ihracat/iso-ihracat-iklimi-endeksi-mayis-ayinda-341e-yukseldi-haberi-472185
