June 14, 2024
The positive trend in the export climate of the Turkish manufacturing sector continued to accelerate in May and the improvement was realized at the highest rate in more than a year. The Istanbul Chamber of Industry’s Export Climate Index for the Turkish Manufacturing Sector rose from 52.3 in April to 52.8 in May 2024. The improvement accelerated for the fourth consecutive month, the highest rate since April 2023. Demand conditions strengthened in most export markets, while weakness was generally confined to a few Central European economies.
France was the only country among the 10 largest export markets where economic activity declined in May, while output continued to expand in other major Eurozone economies such as Italy, Spain and the Netherlands. Economic activity in Germany, the largest foreign market for Turkey’s manufacturing exports, recorded growth for the first time in a year in May. Among all countries tracked by the index, the strongest increase in economic activity was measured in the United Arab Emirates (UAE).
The results of the May 2024 period of the Istanbul Chamber of Industry (ISO) Turkey Manufacturing Sector Export Climate Index, which measures the operating conditions of the Turkish manufacturing sector in its main export markets, were announced. All figures measured above the threshold value of 50.0 in the index indicate an improvement in the export climate, while values below 50.0 indicate deterioration. Istanbul Chamber of Industry Turkey Manufacturing Sector Export Climate Index, which was 52.3 in April, rose to 52.8 in May. The index indicated that demand conditions in export markets strengthened significantly on a monthly basis, while the improvement accelerated for the fourth consecutive month and realized at the highest rate since April 2023.
ECONOMIC ACTIVITY IN THE USA INCREASES FOR 16 MONTHS
Economic activity in Germany, Turkey’s largest foreign market with a share of nearly 8 percent in Turkey’s manufacturing exports, grew in May for the first time in a year. Production in other major Eurozone economies such as Italy, Spain and the Netherlands also continued to expand. Among the top 10 export markets, France was the only country where economic activity declined, while the downtrend in output reached 12 months. Looking at European countries outside the euro area, economic activity increased in the United Kingdom, Russia and Romania, while signs of weakness persisted in some Central European countries such as Poland and the Czech Republic. In the US, where 6 percent of Turkish manufacturing exports are realized, economic activity has increased for 16 consecutive months and growth has reached the highest pace since April 2022.
INDIA AMONG THE STRONGEST GROWING COUNTRIES
Of all the countries tracked by the index, the strongest increase in economic activity was measured in the United Arab Emirates (UAE). Several other Middle Eastern countries, such as Saudi Arabia, Qatar and Kuwait, also saw sharp increases in output. In contrast, economic activity continued to contract in Egypt and Lebanon. India remained one of the strongest growing countries in the global economy. Output in this country increased again strongly, albeit at the slowest pace since the beginning of the year. On the other hand, India’s share in the Turkish manufacturing sector’s export market remains below 1 percent.
Commenting on the Istanbul Chamber of Industry Turkey Export Climate Index, Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “The resumption of production expansion in Germany supports the perception that international market conditions are improving. This could provide additional opportunities for Turkish manufacturers to secure more new orders from abroad in the coming months. In addition, economic activity in some of the sector’s other key export markets also appears to be picking up significantly.”
Source: Istanbul Chamber of Industry
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