Deterioration in export climate continues

ISTANBUL

The Istanbul Chamber of Industry’s (İSO) Manufacturing Sector Export Climate Index remained below the 50-threshold value, posting 49 in September.

The index was 49.1 in August, declining from 50.3 in July and 51.1 in June.

Any figure above the 50 no-change mark signals an improvement in the export climate.

“Overall demand conditions in export markets for Turkish manufacturers declined for the second month running in September, primarily due to weakness in Europe,” the chamber said in a statement.

The four largest European export markets for Turkish manufacturers - Germany, the U.K., Italy and France - all posted reductions in business activity in September, the İSO said, noting that these markets account for around 23 percent of Turkish manufacturing exports.

Growth was again centered on the Middle East and India, while the U.S. saw broadly stable demand conditions at the end of the third quarter, it added.

Rates of expansion accelerated in the United Arab Emirates and Saudi Arabia, while Qatar posted a marked expansion in activity, according to the chamber.

“Economic weakness in Europe continued to present a hurdle for Turkish manufacturers in September, limiting the options for export sales as the third quarter drew to a close,” commented Andrew Harker, economics director, at S&P Global Market Intelligence.

Türkiye’s exports inched up 0.3 percent in September from a year ago to $22.7 billion, the Trade Ministry reported earlier this month.

Imports plunged 14.1 percent year-on-year to $27.7 billion, leading to a foreign trade deficit of $5 billion, down 48 percent from September last year.