Export climate index climbs above 50 mark

The Istanbul Chamber of Industry (İSO) Türkiye Manufacturing Export Climate Index posted above the 50 no-change mark for the first time in six months in January.

At 50.6, the index was up from 49.7 in December, but signaled only a modest improvement in demand conditions overall, the chamber said in a statement.

The demand climate for Turkish manufacturing exporters strengthened for the first time since July 2023 in the opening month of the year amid further signs of recovery in a number of key export markets, it added.

The renewed strengthening of the export climate in part reflected expanding output in three of the five largest export markets for Turkish manufacturers as Italy joined the U.S. and the U.K. in growth territory, according to the chamber.

"Notably, the U.S. and the U.K. posted the fastest increases in activity in six and eight months, respectively," it added.

The single largest export market for Turkish manufactured goods - Germany - remained in contraction in January, however, seeing output decrease for the seventh month running and at a faster pace than in December last year, the chamber said.

There is a definite sense of demand conditions in key export markets picking up, with the notable exceptions of Germany and France, which remained under pressure at the start of the year, commented Andrew Harker, economics director at S&P Global Market Intelligence.

"Signs of improvement in a range of markets hopefully means that Turkish manufacturers will be able to generate greater export sales over the months ahead," Harker said.