Turkey's Manufacturing Sector Export Climate Index Shows Moderate Yet Noticeable Improvement in Export Environment Compared to Previous Month

In September, the Istanbul Chamber of Industry's Turkey Manufacturing Sector Export Climate Index was at 50.5, increasing to 51.1 in October, indicating a moderate improvement in the export climate compared to the previous month. This marked a strengthening in external demand conditions across ten consecutive survey periods.

Despite the overall improvement in the export climate, economic activity in Germany, Turkey's largest export market, showed a modest decline for the fifth consecutive month in October. France also recorded a contraction during the same period, with these two countries accounting for approximately 13% of Turkey's manufacturing export market share.

In other regions of Europe, a more positive picture emerged. The United Kingdom continued to see production growth, while Spain maintained robust growth. In Italy, economic activity resumed growth after a slight decline in September. The United Arab Emirates recorded the strongest increase in economic activity, with growth reaching its highest pace in the past six months.

Production increased in Saudi Arabia, Qatar, and Kuwait, while contraction persisted in Egypt and Lebanon. In Lebanon, the production contraction was measured at the highest rate in the past 44 months.

In the United States, where Turkey's manufacturing industry exports 6% of its output, economic activity also showed strong growth in October, extending the current growth trend to 21 months. In Canada, production saw an increase for the first time since May.

Looking at other significant export markets, economic activity in Russia showed moderate growth, while manufacturing output in the Netherlands and Romania contracted.

Among the economies monitored in the survey, Austria experienced the most severe production loss, with contraction occurring at the highest rate since the beginning of 2024.

Commenting on the Istanbul Chamber of Industry's Turkey Export Climate Index, S&P Global Market Intelligence's Economic Director Andrew Harker stated: "Despite Germany's notably low performance, which is Turkey's largest export market, the export climate continues to improve overall. The growth in economic activity in many other key markets provided firms with various options to sustain their overseas sales. While the Middle East region remains a primary source of growth, production in the United States continued to rise robustly despite the uncertainties surrounding the upcoming presidential elections."