Istanbul Chamber of Industry (ICI), measuring the conditions of export in the manufacturing industry, announced the results of the Turkey Manufacturing Sector Export Climate Index for the February 2021 period. ICI Manufacturing Export Climate Index rose above the threshold of 50, posting 51.5. In January, the index was at 49.9.
All figures measured above the threshold of 50 signal an improvement of the export climate while values below 50 indicate a deterioration of the climate. According to the latest survey, the improvement of demand conditions in export markets was moderate but the strongest since September last year.
The primary source of improvement in February was the US economy which accounts for approximately 6% of the Turkish manufacturing export market. Output increased substantially and the pace of production has surpassed the 6-year high recorded in January.
Germany, the largest export market of the Turkish manufacturing industry, showed a subtle increase in overall economic activity in February despite the strong growth in the manufacturing sector. The rise was at a 6-month low as the pandemic restrictions continued to affect the service sector. While the manufacturing sector performance was positive in many countries in the eurozone, the Netherlands and Austria stood out the most with strong output growth. Meanwhile, other European nations suffered from weaknesses in demand as a reflection of the COVID-19 pandemic. Output volume in the UK remained flat in February, after a significant drop in the previous month. France and Spain experienced decreases in output while a moderate increase was observed in Italy.
Expansion of output continues in Russia, growth in China slows down
Russia’s output increased in February, the second month in a row. The trends varied in other BRIC nations. A sharp and accelerated activity in India was observed. China registered a decrease in growth and Brazil a moderate decrease in output. The results for the Middle East region also differed in February. Saudi Arabia, the UAE and Qatar maintained the expansion of output while the contraction in Egypt and Lebanon endured. Strong growth was recorded in parts of Asia. Taiwan, Singapore and North Korea were among the best performers globally. Meanwhile, political instability in Myanmar resulted in a sharp decline in the manufacturing output.