Türkiye’s Export Climate Index Hits 4-Month High on Strong US and Middle East Demand
export
The Istanbul Chamber of Industry (ISO) Türkiye Manufacturing Export Climate Index, which measures business conditions in the country’s main export markets, recorded 51.3 in July 2025, up from 51.0 in June. Any reading above the threshold of 50.0 signals an improvement, while values below indicate a deterioration.
This marks the 19th consecutive month of strengthening export conditions, with July showing the most pronounced improvement since March.
US and Middle East Lead Growth
Economic activity in the United States, Türkiye’s second-largest manufacturing export market, expanded at its fastest pace of 2025, driven by robust production gains. The Middle East also contributed to demand growth, particularly in the United Arab Emirates, where non-oil activity maintained strong momentum despite a slight slowdown from June. Similar trends were noted in Saudi Arabia and Kuwait.
In Europe, several key markets registered production growth. Spain saw strong expansion, while Germany, the United Kingdom, Italy, and the Netherlands posted moderate gains. In contrast, France and Romania—together accounting for 7% of Türkiye’s manufacturing exports—continued to contract.
Mixed Performance Elsewhere
Russia saw its second straight monthly decline in production, with July’s drop being the steepest since October 2022. Meanwhile, India recorded the fastest growth among all monitored economies, accelerating to a 15-month high. The sharpest contraction was in Taiwan, marking its biggest slump since August 2023, while Poland and Kenya also saw notable downturns.
Market Outlook
Commenting on the data, Andrew Harker, Economics Director at S&P Global Market Intelligence, noted:
“In July, demand conditions improved in most of the top ten export markets for Turkish manufacturers. The marked expansion in the US—where growth reached its fastest pace since the start of 2025—was particularly encouraging. In a global trade environment filled with uncertainties, the fact that Türkiye’s key external demand sources are generally showing stronger economic activity is a positive signal.”
