Export climate for Turkish manufacturers improved further in May

In the index, which measures the operating conditions of the manufacturing sector in the main export markets, values above 50 indicate improvement, while values below 50 indicate deterioration. undefinedincreased from 50.8 in April to 51 in May, and the strengthening in the export climate gained momentum, albeit limited.

The US and the Middle East continued to play a supportive role

Economic activity in the US, Türkiye's second largest export market, regained strength in May, while Middle Eastern countries continued to make a significant contribution to exports. Although the increase in non-oil economic activity in the United Arab Emirates remained evident, the pace of growth slowed to the lowest level since September 2021. Production remained strong in Saudi Arabia and Kuwait, while economic activity declined in Egypt, Lebanon and Qatar.

The outlook in Europe is mixed: Strong and weak links

In Europe, the mixed signals continued in the middle of the second quarter. Economic growth continued in markets such as Italy, Spain and the Netherlands, while France, Germany and Romania continued to weaken. In the United Kingdom, output stabilized in May after a slight decrease in April. In Russia, economic activity rebounded after two months of decline.

Uganda recorded the strongest growth among all economies monitored in May. Output growth in the country reached the highest level since August 2023. On the other hand, economic activity contracted significantly in Mexico due to the impact of tariffs, while production continued to decrease in Canada.

“Demand climate continues to provide support”

Andrew Harker, Economics Director at S&P Global Market Intelligence, stated in his assessment that despite the uncertainties in global trade conditions, positive signals for Turkish exporters continued, “In May, the main export markets continued to offer sufficient opportunities for export growth. The standout development of the month was the recovery in growth in the US. However, companies expect a similar recovery in major markets in Europe.”