The Manufacturing Sector Export Climate Index in Turkey increased in May

Turkey's Export Climate Index

According to the Istanbul Chamber of Industry (ISO), which measures the activity conditions in the main export markets of Turkey’s manufacturing sector, the Manufacturing Sector Export Climate Index for May was recorded at 52.3. Although the index showed a slight decrease compared to April, it remained above the threshold value of 50.0 for the fourth consecutive month, indicating a continued improvement in the export climate.

The Istanbul Chamber of Industry (ISO) Manufacturing Sector Export Climate Index, which was 53.1 in April, decreased slightly to 52.3 in May. Although the index showed a slight decline compared to the previous month, it indicated a strong improvement in export demand conditions for Turkish manufacturers on a monthly basis. Despite being the mildest level of improvement since February, the export climate has strengthened over the past four months as of May.

There is improvement in the United States, while the European market has lost momentum.

One of the main markets contributing to the continued improvement in demand conditions is the United States, where economic activity has been increasing for four consecutive months. The country experienced growth at its highest rate in over a year. In Europe, although production generally increased in May, growth lost momentum in many countries. Due to the weakness in the manufacturing sector, economic activity in France, Germany, Ireland, Italy, Spain, and the United Kingdom increased at a lower rate compared to April.

In European countries where PMI indexes are available only for the manufacturing industry, the data indicated signals of insufficient demand in the sector. Austria, the Czech Republic, Poland, and the Netherlands saw a decline in manufacturing production. The exception to this trend was Greece, where manufacturing output increased due to the impact of a strong tourism sector creating demand.

There is a noticeable improvement in the United Arab Emirates, Saudi Arabia, and Qatar.

In May, economic activity continued to increase significantly in the United Arab Emirates, Saudi Arabia, and Qatar, although only Qatar saw an acceleration in growth among these three countries. When looking at other Middle Eastern countries, it was observed that economic activity contracted at a milder pace in Egypt and Lebanon compared to April. In certain regions of Asia, economic growth remained strong. Japan recorded the fastest increase in production since October 2013, while China experienced growth at its highest rate in nearly two and a half years. In India, economic activity remained flat compared to April, which saw the highest increase since the mid-2010s. In Russia, where growth has occurred for four consecutive months, economic activity continued to expand strongly, although it lost some momentum compared to the previous survey period.

Regarding the Istanbul Chamber of Industry Turkey Export Climate Index, Andrew Harker, the Director of Economics at S&P Global Market Intelligence, made the following remarks:
“While the export climate for Turkish manufacturers continues to improve, firms in many countries have benefited from strong demand from service firms in international markets due to sluggish manufacturing demand. Exporters will need a more evenly distributed growth outlook in the coming months for the current improvement to be sustained.”

BloombergHT

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