Deterioration of the export climate after 7 months

The Istanbul Chamber of Industry (ISO) Turkish Manufacturing Export Climate Index declined to 49.1 in August and registered below the threshold of 50.0.

The Istanbul Chamber of Industry’s Turkish Manufacturing Industry Export Climate Index, which was 50.3 in July, decreased to 49.1 in August, registering below the threshold of 50.0.

Thus, the index pointed to a slight deterioration in the demand climate of Turkish manufacturing exporters for the first time in the last seven months.

PRODUCTION LOWERS IN 5 OF THE 6 MOST EXPORTING COUNTRIES

The decline in economic activity in many European countries was the main factor leading to the weakening of the export climate.

Production in Germany, the United Kingdom, Italy, France and Spain, five of the six countries to which the products of the Turkish manufacturing industry are most exported, decreased in August. The drop in Germany was significant and the highest since May 2020.

While falls accelerated in France and Italy, the United Kingdom and Spain went from growth to contraction. In the middle of the third quarter, the increase in production continued in the US, which is the second export market for Turkish manufacturers with a 7 percent share of exports. However, the increase in question was at a very moderate level and was the lowest in the last six months.