The export climate for Turkish manufacturers rebounded in January, according to a survey Thursday that signaled moderate improvement in demand conditions in the country’s key markets.
The Manufacturing Export Climate Index rose to 50.6 points from 49.7 in December, the Istanbul Chamber of Industry (ISO) said. The reading thus climbed above the threshold value of 50 separating growth from contraction.
The survey said signs of recovery persisted in many of Türkiye’s main export markets, while weaknesses continued in some Continental European countries. It also said growth remained robust in the Middle East.
Production increased in three of Türkiye’s top five export markets, as Italy joined the United States and the United Kingdom in the growth zone, the survey showed, playing a big role in the resurgence of the export climate.
The survey noted the expansion of economic activity reaching its highest pace in the past six months in the U.S. and the past eight months in the U.K.
The largest export market for the Turkish manufacturing industry, Germany continued its trend of contraction in January, as the output in Europe’s largest economy declined for the seventh consecutive month, with the decline occurring faster compared to December.
Similarly, France also experienced a contraction in production.
The share of Germany and France in Turkish manufacturing industry exports stands at approximately 13%, the survey said.
Mixed trends were observed in other eurozone countries, with production increasing in Spain and Greece while declining in the Netherlands and Austria.
The strongest growth among all monitored economies was observed in the United Arab Emirates (UAE), Türkiye’s key partner in the Gulf. Production remained strong in Saudi Arabia, increased moderately in Qatar and declined in Egypt and Lebanon, the survey showed.
The Middle East economies covered by the PMI data represent approximately 7% of the export market.
In Russia, economic activity continued to grow in January. The expansion was strong in terms of rate and slightly below that of December. Meanwhile, Poland, the Czech Republic, and Kazakhstan continued to experience a contraction in their economies.
"Apart from two significant economies such as Germany and France that continued to be under pressure in the first month of the year, there are clear signs that demand conditions are strengthening in Türkiye’s main export markets,” said Andrew Harker, economics director at S&P Global Market Intelligence.
“Signs of improvement observed in many markets provide hope that Turkish manufacturers may further increase their sales to foreign markets in the coming months," Harker noted.
