Export climate index falls slightly in June to 51.6

ISTANBUL

The Istanbul Chamber of Industry’s (İSO) Türkiye manufacturing export climate index fell from 52.8 in May to 51.6 in June, pointing to a softer strengthening of the export climate and one that was the least pronounced since March.

Demand conditions in the export markets of Turkish manufacturers continued to strengthen during June, thanks in part to strong growth in the UAE and a faster increase in business activity in the U.S., according to the survey.

The rate of improvement eased from the previous month amid signs of the economic recovery in Europe losing steam slightly, it added.

The index, which remained above the 50 no-change mark since the start of 2024, signaled a sixth consecutive monthly improvement in demand conditions in Turkish export markets.

Of the main export destinations for Turkish manufacturers, the strongest expansion in business activity in June was seen in the United Arab Emirates, according to the survey.

Another area of strength was the U.S., where the latest rise in business activity was the sharpest since April 2022, it said.

The U.S. accounts for 6 percent of Turkish manufacturing exports and is the second-largest market.

The biggest single destination for Turkish manufactured goods is Germany, where business activity decreased fractionally at the end of the second quarter, following the first rise in a year in May.

“Although there was something of a slowdown in growth in June, demand conditions for Turkish exporters are still generally moving in a positive direction,” commented Andrew Harker, economics director at S&P Global Market Intelligence.

Türkiye’s exports declined 10.6 percent year-on-year in June, owing to the long Eid al-Adha holiday in the month, to $18.6 billion. Imports were down 4.1 percent to $25 billion.

The country’s foreign trade deficit widened by 21.4 percent annually to $6.4 billion.

In the first half of 2024, exports amounted to $125.5 billion, rising 2 percent from a year ago.