October 20, 2023
Istanbul Chamber of Industry (ISO) Turkey Manufacturing Sector Export Climate Index remained below the threshold value of 50.0 and reached 49.0 in September 2023. The index, which was below the threshold value in August, was 49.1. The general demand conditions of Turkish manufacturers in export markets deteriorated for two consecutive months in September, especially due to the weakness in Europe.
The weakening of the export climate was largely due to the decrease in demand from Europe. Economic activity in Germany, the United Kingdom, Italy and France, the four largest export markets of Turkish manufacturers in Europe, decreased in September. Economic activity in the USA continued to expand at the end of the third quarter. Production showed a very limited increase, as in August. Demand in the Middle East generally remained vibrant.
The September 2023 results of the 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, have been announced. All figures measured above 50.0, which is the threshold value in the index, indicate improvement in the export climate, while values below 50 indicate deterioration.
Istanbul Chamber of Industry Turkey Manufacturing Sector Export Climate Index remained below the threshold value of 50.0 in September and stood at 49.0. Istanbul Chamber of Industry Turkey Manufacturing Sector Export Climate Index, which was 49.1 in August, decreased to 49.0 in September, remaining below the threshold value of 50.0 for two consecutive months.
DEMAND FROM EUROPE HAS DECREASED
The general demand conditions of Turkish manufacturers in export markets deteriorated for two consecutive months in September, especially due to the weakness in Europe. While the center of growth was again the Middle East and India, demand conditions in the USA remained generally stable at the end of the third quarter. The deterioration in demand conditions in export markets remained very similar to the previous month. The weakening of the export climate was largely due to the decrease in demand from Europe. Economic activity in Germany, the United Kingdom, Italy and France, the four largest export markets of Turkish manufacturers in Europe, decreased in September. These markets constitute approximately 23 percent of Turkish manufacturing industry exports in total. When we look at other countries in Europe, it was seen that production decreased in the Netherlands, Austria, Poland and the Czech Republic. Growth in Spain, Ireland and Greece was relatively positive.
DEMAND MAINTAINED ITS VIVILITY IN THE MIDDLE EAST
On the other hand, economic activity in the USA continued to expand at the end of the third quarter. Production showed a very limited increase, as in August. Demand in the Middle East generally remained buoyant. While growth accelerated in the United Arab Emirates (UAE) and Saudi Arabia, economic activity also increased significantly in Qatar. It was observed that production decreased in Egypt and Lebanon. Excluding the Middle East, the fastest expansion among the countries followed within the scope of the survey was measured in India. Growth in this country followed very close to the previous month and maintained its strong course.
Source: Istanbul Chamber of Industry (ISO)
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