Due to the continuing contraction in economic activity in the Euro Zone, the deterioration in Türkiye's manufacturing sector export climate continued in November.
Istanbul Chamber of Industry Türkiye Manufacturing Sector Export Climate Index, an indicator calculated by combining and weighting the PMI production indices in the National PMI surveys, stood at 49.5 in November. This means that the index remained below the 50 threshold for the fourth consecutive month.
The index increased compared to 48.5 in October, indicating that the deterioration in export demand conditions has eased and the contraction trend has reached its most moderate level.
Declines in economic activity were particularly concentrated in the Eurozone; Contractions were recorded in Germany, Italy, France, Spain and the Netherlands. However, the overall contraction in these economies slowed down compared to October. Spain, as the only exception, completed its horizontal course in October with a decrease in November.
Although the demand climate for Turkish manufacturing industry exporters continued in November, there are signs that this deterioration may end as the end of the year approaches. While production increased strongly in some regions in Asia and the Middle East, the United States continued to expand; England, on the other hand, started to grow again. Although demand weakness continues in the Eurozone, there are signs that the decline has slowed down. Manufacturers' hope is that this partial recovery will become more evident in the coming months.
Additionally, there were signs of recovery in the United Kingdom, Turkey's third largest export market. Production increased slightly, ending the three-month downward trend. In the USA, production increased for the tenth month in a row in November, and the growth rate was maintained at a moderate level, maintaining the growth rate in October.
The market that provided the greatest support to demand conditions was the United Arab Emirates, where the pace of expansion in non-oil activity reached a five-month high. In the Middle East, while growth accelerated in Saudi Arabia and Qatar, a contraction was observed in Egypt and Lebanon.
Economic expansion occurred in some Asian countries such as India, China, Singapore, Indonesia and the Philippines in November.
Apart from India and China, BRIC economies, Brazil and Russia recorded economic growth in the middle of the fourth quarter. However, the increase in Russia was at the lowest rate in the 10-month expansion period. S&P Global Market Intelligence Economics Director Andrew Harker evaluated this situation.
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