Turkiye's manufacturing export climate index declines in June

Turkiye’s manufacturing export climate index dropped from 52.8 in May to 51.6 in June, indicating a softer strengthening of the export climate, marking the least pronounced growth since March, according to Istanbul Chamber of Industry (ISO). Despite this decline, demand conditions in Turkiye's export markets continued to improve, bolstered by robust growth in the UAE and a quicker increase in business activity in the US, as reported by the survey.

Turkiye’s exports experienced a significant year-on-year decline of 10.6 per cent in June, attributed to the extended Eid al-Adha holiday, totalling $18.6 billion. Meanwhile, imports fell by 4.1 per cent to $25 billion, resulting in the country’s foreign trade deficit widening by 21.4 per cent annually to $6.4 billion, according to Turkish media reports.

The rate of improvement in the export climate eased from the previous month, amid indications that economic recovery in Europe was slightly losing momentum. Nonetheless, the export climate index has remained above the 50 no-change mark since the beginning of 2024, signalling a sixth consecutive monthly improvement in demand conditions in Turkish export markets.

Among Turkiye's main export destinations, the UAE saw the strongest expansion in business activity in June. The US also showed notable strength, with the latest rise in business activity being the sharpest since April 2022.

Germany, the largest single destination for Turkish manufactured goods, experienced a slight decrease in business activity at the end of the second quarter, following the first rise in a year in May.

Fibre2Fashion News Desk (DP)