Türkiye’s manufacturing sector continued to see a steady improvement in export demand conditions in May despite uncertainty in global trade, according to data on Tuesday.
The Manufacturing Export Climate Index, which tracks the performance of Türkiye’s key export markets, rose to 51.0 in May, up from 50.8 in April, the Istanbul Chamber of Industry (ISO) said.
Readings above the neutral 50 threshold indicate an improvement in the export climate, while values below suggest deterioration. The latest figure marks the 17th consecutive month of improvement.
Although the May improvement was modest, it reaffirmed a trend of export demand expansion for Turkish manufacturers that began in early 2023.
The data suggested Turkish manufacturers may need a stronger recovery in core European markets to solidify current gains and sustain momentum in the second half of 2025.
The United States – Türkiye’s second-largest export destination – was one of the key drivers of the May momentum.
After recording its slowest pace in 19 months in April, U.S. manufacturing rebounded in May with strong output growth, the data showed.
Alongside the U.S., the Middle East remained a key driver of exports. In the United Arab Emirates, non-oil economic activity showed a notable monthly increase, though the growth rate fell to its lowest level since September 2021.
Despite a slowdown in production, Saudi Arabia and Kuwait still registered strong growth. Meanwhile, economic activity declined in Egypt, Lebanon and Qatar.
The outlook in Europe, Türkiye’s largest trade partner bloc, remained mixed midway through the second quarter, according to data.
While Italy, Spain and the Netherlands sustained growth in economic activity, France, Germany and Romania continued to experience weakness.
The U.K. stabilized after a minor contraction in April, showing no change in output for May.
Russia, which had recorded declines in the prior two months, saw a return to growth.
Among all economies tracked in the survey for May, Uganda recorded the strongest growth, with production expanding at its fastest pace since August of last year.
On the other hand, Mexico experienced the sharpest decline in economic activity, largely due to the impact of new import tariffs by the United States. Similarly, Canada's production contraction persisted.
“Despite uncertainties in global trade conditions, key export markets continued to provide sufficient opportunities for growth in May, allowing Turkish manufacturing exporters to see further improvements in overall demand,” said Andrew Harker, economics director at S&P Global Market Intelligence.
“The standout development of the month was the recovery in U.S. growth. However, for a more substantial improvement in conditions, firms will be looking for similar positive trends in major European markets,” Harker noted.
