Demand conditions in key export markets for Turkish manufacturers have improved at their fastest pace since May 2024, supported by robust activity in the U.S. and ongoing recovery in the Middle East, a survey showed Tuesday.
The Türkiye Manufacturing Export Climate Index, compiled by the Istanbul Chamber of Industry (ISO) and S&P Global, rose to 52.7 in August from 52.2 in July, marking the fourth consecutive month of increase.
Readings above 50 indicate improving business conditions in the main export destinations, while those below point to deterioration.
The index is calculated by weighting manufacturing Purchasing Managers' Index indices from national PMI surveys according to each market's share of Türkiye's manufacturing exports.
Andrew Harker, economics director at S&P Global Market Intelligence, said global economic growth appeared to be strengthening as the third quarter progressed, potentially supporting Turkish manufacturers' overseas business volumes.
The strong improvement in demand conditions is driven by two key regions, including the U.S., where output growth reached its highest level in around 4.5 years, and the Middle East, where the recovery trend has continued following the outbreak of the Iran war.
Growth across European markets remained more moderate, said Harker, but an acceleration in the region in the coming months could create further opportunities for Turkish manufacturers.
U.S. output hits 52-month high
Manufacturing output in the United States, which accounts for about 6% of Türkiye's manufacturing export market, rose strongly in August, with the pace of growth reaching its highest level in 52 months.
Economic activity across Europe generally expanded at a more moderate pace. Germany and Britain recorded a second consecutive monthly increase in activity, with growth accelerating from July although remaining modest.
The Netherlands and Spain recorded marked increases in economic activity in August, while Italy saw strong expansion, with its growth rate reaching its highest level since November 2025.
Romania recorded its fastest increase in output in 27 months.
Among major export markets covered by the survey, France and Poland were the only countries where economic activity weakened. Output declines in both countries accelerated from July.
Middle East recovery
Economic activity generally improved across the Middle East in August.
Output growth in the United Arab Emirates (UAE) reached its highest level in six months, while Saudi Arabia recorded its strongest growth in seven months. Both countries posted output increases among the strongest globally.
Kuwait also recorded its strongest growth since before the war in the region began.
Output continued to decline in Qatar and Egypt, while economic activity in Lebanon was broadly unchanged.
Among all countries covered by the survey, Zambia recorded the steepest contraction in output in August, as economic activity slowed sharply during the election period.