The deterioration of the export climate continues

Turkey’s Export Climate Index, announced by the Istanbul Chamber of Industry (ISO), fell to 49 in September, falling for the fifth consecutive time and remaining below the threshold value of 50.

All values ​​measured above 50 in the index indicate an improvement in the export climate, while values ​​below 50 indicate a deterioration.

According to ISO data, the index decreased from 49.1 in August to 49, while overall demand conditions in export markets deteriorated for two consecutive months in September, especially due to weakness in Europe.

ECONOMIC WEAKNESS IN AFFECTED EUROPE

September saw a decline in economic activity in Germany, the United Kingdom, Italy and France, the four largest export markets for Turkish manufacturers in Europe.

The markets of these four countries correspond to approximately 23 percent of the Turkish manufacturing industry’s exports.

While production showed a limited increase like in August, demand in the Middle East remained generally vibrant.

UAE IS THE MAIN SOURCE OF INCREASE IN DEMAND

Assessing the index, S&P Global Market Intelligence Chief Economic Officer Andrew Harker said: “Economic weakness in Europe continued to pose a headwind for Turkish manufacturers in September and limited companies’ options in terms of foreign market sales. at the end of the third quarter. “.

Harker said: “In addition, as a result of muted growth in the US, the main source of increased demand among key export markets was again the United Arab Emirates. “Economic activity in Russia also maintained its resilient appearance,” he said. (REUTERS)