Istanbul Chamber of Industry (ISO) Turkey Manufacturing Sector Export Climate Index reached 47.5 with a strong increase in June. ISO Turkey Manufacturing Sector Export Climate Index reached 47.5 with a strong increase in June.
After hitting historical lows of 19.1 in April, the index made a rapid recovery in May, thus returning to pre-pandemic levels with its performance in June. With the recovery that started due to the easing of Covid-19-related curfew restrictions in many markets around the world, the index was recorded at the highest level of the last four months.
Istanbul Chamber of Industry (ISO) Turkish Manufacturing Sector Export Climate Index, which measures the activity conditions of the Turkish manufacturing sector in the main export markets, pointed out that the contraction in the demand conditions of Turkish exporters is nearing an end.
While the contractions in production occurred at much lower rates in Germany, the United Kingdom, Italy and Spain, which constitute approximately 26 percent of Turkish manufacturing sector exports, France, which is among the main export markets in economic activity, showed the first increase in the last four months and the UAE in the last six months. The decline in economic activity in the USA also slowed down significantly for the second month in a row.
The contraction in the four major export markets was low
Overall, PMI surveys pointed to increases in activity in markets that account for approximately 9 percent of Turkish manufacturing sector exports. In other markets, the contraction slowed down, some of them significantly. As curfew restrictions continued to be relaxed in Europe and economic conditions approached normal, contractions in production occurred at much lower rates in Germany, the United Kingdom, Italy and Spain, which constitute approximately 26 percent of Turkish manufacturing sector exports. In the USA, where the contraction was at its most moderate level since February, the decline in economic activity decelerated significantly for the second month in a row.
While it was observed that the recovery continued in many economies, others were still negatively affected by the epidemic as of June and continued to experience a sharp contraction in activity. The highest decreases in production in June occurred in Indonesia, Mexico and Mozambique. However, these economies account for a very small share of the total demand for Turkish manufacturing exports.
Evaluating the Istanbul Chamber of Industry Turkey Export Climate Index, IHS Markit Economy Director Andrew Harker said: “While it is clearly felt that the harshest part of the contraction caused by Covid-19 is behind us, it seems that companies can start to evaluate the transition to growth again. The fact that the main export markets have either moved into the rapid expansion zone or become much closer to balancing has been a positive development for Turkish manufacturing sector exporters. “If the epidemic does not spread rapidly again, export demand may begin to recover significantly in the second half of the year.”
Source: https://www.dunya.com/ekonomi/ihracat-ikliminde-v-tipi-toparlanma-haberi-474640
