The Istanbul Chamber of Industry (ISO) announced the results of the Türkiye Manufacturing Sector Export Climate Index for June 2024 on Monday, revealing an index of 51.6 for the month.
All figures above the threshold value of 50 in the index indicate an improvement in export conditions, while values below 50 suggest deterioration.
The index remained above the threshold value in June, marking the sixth consecutive monthly improvement in demand conditions in Turkish export markets.
After reaching 52.8 in May, the index declined to 51.6 in June, marking the lowest level since March and signaling a slowdown in strengthening the export climate.
In June, the United Arab Emirates (UAE) recorded the strongest economic expansion among Türkiye’s major export markets despite production growth reaching its lowest rate in about 18 months.
Another notable development occurred in the U.S., Türkiye’s second-largest export market with a share of 6%, where economic activity grew at its fastest pace since April 2022.
Meanwhile, economic activity in Germany, Türkiye’s largest export market, showed a slight decline in June after showing its first increase in a year in May.
Production increases in Italy, Spain and the Netherlands slowed down, while France continued to experience contraction.
Looking beyond the Eurozone, despite strong economic growth in the U.K., overall growth was at its lowest rate in the past year.
Central Europe showed signs of weakness in June, with manufacturing production declining in Poland and Czechia and a moderate decline following two months of growth in Romania.
Economic activity in Russia also resumed its decline. Qatar witnessed the fastest production growth among all countries surveyed in June, followed by Saudi Arabia and India.
Andrew Harker, economics director at S&P Global Market Intelligence, commented, “Despite a slight slowdown in growth in June, Turkish exporters generally maintained positive demand conditions. Particularly, the markets in the U.S. and UAE supported the overall outlook.”
“The deceleration in improvement in June largely stemmed from a slowdown in economic recovery in Europe towards the end of the second quarter. Therefore, July (Purchasing Managers’ Index) PMI data will be closely monitored to determine whether this is merely a temporary slowdown or the beginning of a longer period of deceleration.”
