The Istanbul Chamber of Industry (ISO) announced the Export Climate Index data for October. Accordingly, the index rose to 51.1 in October from 50.5 in September.
Despite the general improvement in the export climate, economic activity in Germany, Turkey's largest export market, fell for the fifth consecutive month in October. France was also among the important markets that continued to shrink. The total share of these two countries in Turkey's manufacturing industry exports is around 13 percent.
More Positive Outlook in Other Regions of Europe
A more positive picture emerged in other regions of Europe. Production growth continued in the United Kingdom, while growth in Spain remained strong. In Italy, economic activity increased again after a slight decline in September. Economic growth in the United Arab Emirates (UAE) remained strong, reaching its fastest pace in six months.
Growth in the Middle East, contraction in Egypt and Lebanon
Production increased in Saudi Arabia, Qatar and Kuwait, while the economic contraction continued in Egypt and Lebanon. In Lebanon in particular, production fell by the highest rate in 44 months.
US Continues Strong Growth in Economic Activity
In the US, which accounts for 6% of Turkey's manufacturing exports, economic activity increased strongly in October and the current growth trend reached 21 months. Canada recorded its first production increase since May.
Situation in Russia and Central Europe
Other major export markets include Russia, which saw a moderate increase in economic activity, while manufacturing production in the Netherlands and Romania contracted. Austria stands out as the country with the highest rate of production loss since the beginning of 2024.
Assessment from S&P Global Market Intelligence
Andrew Harker, Economics Director at S&P Global Market Intelligence, evaluated the Export Climate Index. ““Despite Germany’s significantly weaker performance, the Turkish manufacturing industry’s export climate has continued to improve overall. Growth in many other key markets offers a range of options for firms to sustain their overseas sales. The Middle East remains one of the main sources of growth, while the US saw strong production growth despite the uncertainty ahead of the presidential election.”
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