The slowdown in export conditions continues

The December 2022 results of 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, have been announced.

Turkey’s manufacturing industry export climate index from Istanbul Chamber of Industry, which was 47.8 in November, was 48.5 in December, indicating that the slowdown in the export conditions of Turkish manufacturers.

Although the deterioration in external demand conditions was the slightest since September, it continued for the fifth consecutive month.

All measured figures above the threshold value of 50.0 in the index indicate an improvement in the export climate, while values ​​below 50 indicate deterioration.

The US IS ONE OF THE MAIN SOURCES OF THE SLOWDOWN

The US, where economic activity registered the biggest drop in the last four months, continued to be one of the main sources of the slowdown. Production in Germany fell for the sixth consecutive month.

Activity in the UK, Italy, Spain and France also showed a more moderate decline from the previous month.

The United Arab Emirates was the only country where economic activity expanded among the main export markets. The fastest growth was in Thailand.

‘CONTINUED WEAKNESS IN THE UNITED STATES AND EUROPE’

Commenting on the Istanbul Chamber of Industry’s Turkey Export Weather Index, Andrew Harker, director of economics at S&P Global Market Intelligence, said:

“As of the last month of 2022, no significant change was observed in the outstanding trends of the global economy; Weakness continued in the United States and Europe. However, the observed signs that the slowdown in Europe slowed in December gave hope for a more positive outlook in 2023.

However, the Middle East, where the strong increase in economic activity continues as we enter the new year, remains the main source of growth for Turkish exporters for now.