The results of the December 2024 ISO Türkiye Manufacturing Sector Export Climate Index, which measures the operating conditions of Turkey's manufacturing sector in key export markets, have been announced.
All measured values above 50, the threshold value in the index, indicate an improvement in the export climate, values below 50 indicate a deterioration.
The export climate index of the Chamber of Industry of Istanbul, Türkiye, was 50.6 in November and rose to 50.9 in December.
With the positive reading in the last month of last year, demand conditions in export markets improved over the year. Although the improvement was modest in December, it was more significant than in November.
Of all the countries tracked in the December PMI survey, the Middle East recorded the highest economic growth rates. Second only to Saudi Arabia, where production increased the most, was the United Arab Emirates (UAE), where the expansion rate reached an eight-month high.
Economic activity in the United States increased sharply. While production increased rapidly in Kuwait, the increase in Qatar was relatively modest. Economic activity fell in Egypt and Lebanon. The sum of these six economies accounts for about 7 percent of Turkey's manufacturing exports.
Strong increase in production in the USA, mixed development in Europe
In the USA, where manufacturing accounts for 6 percent of the export market, economic activity increased sharply in December. Growth in this country accelerated for the third month in a row, reaching its fastest pace since April 2022.
The European economies experienced a more complex development. While growth was recorded in the UK, Spain, Ireland, Greece, Kazakhstan and Russia, expansion in Spain and Greece accelerated in the final month of the year.
However, a decline in production volumes was observed in Germany, France, Italy, the Netherlands, Romania, Austria, Poland and the Czech Republic. Among countries that released PMI data in December, Austria was the country where manufacturing output fell the most.
India continued its strong growth trend in Asia
While economic activity in China and Brazil increased moderately in December, India continued its strong growth trend. India ranked third among fastest-expanding countries after Saudi Arabia and the United Arab Emirates.
Andrew Harker, director of S&P Global Market Intelligence Economics, whose views were taken into account in the statement, explained that the export climate of Turkish manufacturers has improved over the course of 2024, pointing out that within this positive overall picture there are quite contradictory trends different regions of the world.
Harker pointed out that the Middle East region is one of the important sources of growth throughout the year and that positive development can be observed in the US, especially in the second half of 2024. “On the other hand, demand in the Eurozone was more fragile and some countries in particular showed extremely pronounced weakness.” “Turkish companies are entering 2025 hoping for a more balanced demand environment in key trading markets,” he said.
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