Weakness in Europe Slowed Down Exporters
The Istanbul Chamber of Industry (ISO) Export Climate Index, which measures operating conditions in the main export markets of the manufacturing sector, remained above the threshold value of 50 in November, indicating that the improvement observed in the demand conditions of export markets since the beginning of the year continued.
However, the index's decline from 51.1 in October to 50.6 signaled that the strengthening slowed down and remained at a limited level. Accordingly:
The prominent negative development for Turkish manufacturers was the performance of export markets in Europe.
In Germany, the largest market, economic activity declined for the sixth consecutive month, and the deterioration occurred at the most significant level since February.
During the same period, production losses were also experienced in France, Italy, the Netherlands, and Romania.
It was observed that the increase in production continued in the United Kingdom and Spain in November, although the rate of increase slowed down somewhat.
The increase in production in the United Kingdom was recorded at the lowest rate since the beginning of the year.
Russia's economic activity increased for the second consecutive month, and the said increase was measured at the highest rate in the last eight months.
POSITIVE CONTRIBUTION FROM THE USA AND UAE
The US market, on the other hand, was one of the main sources of improvement. The USA, where economic activity accelerated in November and recorded a significant increase, and where growth occurred at the highest level since April 2022, continued to be one of the main sources of improvement in external demand.
In addition to the USA in November, another country that performed strongly among the 10 major export markets of Turkish manufacturers was the United Arab Emirates (UAE), where rapid growth continued. Looking at the rest of the Middle East, Saudi Arabia reached its highest growth rate in the last 16 months and recorded the fastest growth among the countries followed within the scope of the survey. Similarly, a sharp increase in production was observed in Kuwait as well.
All figures measured above the threshold value of 50 in the index indicate an improvement in the export climate, while values below 50 indicate deterioration.