Turkey's Export Market Climate Shows Limited Improvement in May

The Istanbul Chamber of Industry’s Export Market Climate Index for Turkey’s manufacturing sector rose to 50.3 in May, up from 50.2 in April and returning to the March level. The index, which gauges demand conditions in key overseas markets, signals a modest but continued improvement, marking the 29th consecutive month of better‑than‑neutral readings.

European markets remained weak: production declined in Germany and France and the United Kingdom posted a fresh downturn, together accounting for about 19% of Turkish manufacturing exports. The United States kept its activity expanding, while Middle‑East economies showed mixed signs – the United Arab Emirates recorded the strongest non‑oil growth in three months, Saudi Arabia accelerated its expansion, and Egypt, Kuwait, Lebanon and Qatar saw only limited declines.

In the Turkish city of Bursa, May export receipts reached $3.389 billion, with the automotive sector contributing $2.916 billion, textiles $91.3 million, ready‑made garments $72.4 million, and fruit‑vegetable products $17.5 million. The first five months of 2026 saw total exports rise 3% year‑on‑year to $17.738 billion, with the automotive sector alone reaching $15.215 billion. S&P Global Market Intelligence’s Andrew Harker warned that short‑term geopolitical tensions could continue to limit global demand despite the observed uptick.