In the statement made by the Istanbul Chamber of Industry (ICI), the October results of the Turkish Manufacturing Industry Export Climate Index were announced.
The index, in which all numbers measured above the threshold value of 50 indicate an improvement in the export climate, while values below indicate deterioration, decreased from 48.8 to 47.9 in October compared to the previous month.
Thus, while demand conditions in export markets weakened for 3 months in a row, the deterioration in October was the highest since June 2020, when the first wave of the Covid-19 epidemic was experienced.
WEAKNESS OF DEMAND CONTINUES IN MAIN MARKETS
Demand weakness in the main export markets of Turkish manufacturers showed a widespread outlook last month. In Europe, the production of Germany, the biggest export market of Turkish manufacturers, decreased for the fourth month in a row and the decline accelerated compared to September.
Economic activity shrank at a higher rate in the United Kingdom, Italy, Spain, Netherlands, Austria, Greece, Poland and the Czech Republic. In France, however, production fell slightly after the increase recorded in the previous survey period.
The shrinkage in the USA, which has a share of approximately 7 percent from Turkish manufacturing industry exports, continued in October. The decline in production reached the fourth month trend and was higher than in September. While manufacturing industry production in Canada slowed down more significantly compared to the previous month, the decrease decelerated in Mexico.
“THE DIFFICULTY TO GET NEW ORDERS WILL CONTINUE”
Among the 18 largest export markets, economic activity increased only in the United Arab Emirates (UAE). Non-oil production increased strongly in this country and growth gained momentum compared to September.
Looking at other Middle Eastern countries, economic activity increased in Saudi Arabia and Qatar, but slowed in Lebanon and Egypt. Andrew Harker, Economics Director of S&P Global Market Intelligence, whose views are included in the statement, stated that the fact that only the UAE remains in the growth zone among the main export markets within the scope of the survey clearly reveals that the slowdown in the global economy is wide-ranging.
"Current trends suggest that manufacturers will continue to have difficulty getting new orders from export markets, at least for the remainder of 2022," Harker said.
Andrew Harker, Director of Economics at S&P Global Market Intelligence, "Current trends suggest that manufacturers will continue to have difficulty getting new orders from export markets, at least for the remainder of 2022", he added.