TİM’s export demand index down 1 percent in July

ISTANBUL

The export demand index declined by 1 percent in July from the previous month, while the annual drop in the gauge was 0.6 percent, The Türkiye Exporters Assembly (TİM) has said.

The index monitors the demand conditions for exported products in the country’s export markets by using basic macroeconomic indicators and leading macroeconomic indicators.

In addition to the deterioration in business and consumer confidence, the limited improvement in inflation expectations caused the index to remain below its long-term average, TİM said.

“This limited improvement in inflation expectations increased consumers' and businesses' concerns about future economic conditions, which had a negative impact on aggregate demand. In particular, high interest rates and uncertainty over price levels have limited consumer spending and investment decisions,” the association noted.

The Market Resilience Index, which gauges the resilience of export markets against geopolitical and economic risks, registered 99.7 in July, down 0.1 percent month-on-month but rose 0.4 percent year-on-year.

“Despite the partial improvement in the global geopolitical risk index, economic risks and uncertainties negatively affected resilience across our export markets and pushed the index slightly away from its long-term average,” TİM explained.

The sectoral breakdown showed that the demand index for the steel industry fell 1.4 percent monthly, while the decline in the apparel and confection sector was 1 percent.

In the mining and automotive industries the demand index plunged 2.5 percent and 1.5 percent month-on-month, respectively.

Türkiye aims to generate $267 billion in export revenues this year. In January-July, exports rose 4.1 percent year-on-year to $148.8 billion.