The export climate points to a deterioration for four months

The Istanbul Chamber of Industry (ICI) Turkish Manufacturing Export Climate Index, which measures the operating conditions of the Turkish manufacturing sector in major export markets, decreased to 47.8 in November.

The export climate index, which was 47.9 in October, thus pointed to a deterioration in the export climate of Turkish manufacturers for the fourth consecutive month. All measured numbers above the threshold value of 50 in the index indicate an improvement in export climate, while values ​​below 50 indicate deterioration.

The weakening of demand conditions was moderate, but it was the highest since June 2020.

ECONOMIC ACTIVITY DECREASES IN THE US AND EUROPE

Production in the US, which has a share of about 7 percent in exports from the Turkish manufacturing sector, declined significantly in November, the fastest decline since August.

Economic activity slowed in much of Europe, which is covered by PMI data and whose share of Turkish manufacturing exports hovers around 39 percent. The United Kingdom, France and the Netherlands were among the countries where the contraction became more pronounced compared to October. In Germany, Italy and Spain, the decline continued, albeit at a slower pace.

‘MIDDLE EAST PARTIALLY COMPENSATED’

Commenting on Turkey’s Export Weather Index from the Istanbul Chamber of Industry, Andrew Harker, head of economics at S&P Global Market Intelligence, said recent data trends continue.

Harker said: “While economic activity contracted in Europe and the US, improved demand in the Middle East continued to partially offset this. However, it appears that Turkish manufacturers will continue to be challenged in terms of demand for new orders for some time due to the depth of the contraction in some major export markets.