Turkey’s calendar-adjusted industrial production index gained 5.2% y/y in August, decelerating from the 14.5% y/y rise recorded in the previous month, data from national statistics office TUIK showed on October 9.

Industrial production contracted 4.3% y/y in July last year due to the failed coup attempt but has stayed in annual growth territory since then with a peak point of 14.5% in July this year. On an unadjusted basis, Turkey’s industrial production increased by 3.8% y/y in August following a 25.6% y/y rise in July.

TUIK data showed that calendar-adjusted manufacturing output increased by 5.6% y/y while intermediate goods production rose by 3.7% y/y in August. Durable consumer goods production grew 9.5% y/y and energy output increased 7.6% y/y. Output in the capital goods manufacturing industry rose by 7.3% y/y in the month.

On a calendar and seasonally-adjusted basis, industrial production contracted by 0.1% m/m in August after growing 2.3% m/m in July.

Turkey's manufacturing growth remained strong in September although the country's Manufacturing Purchasing Managers' Index (PMI) declined to 53.5 from August's 77-month high of 55.3.

Turkey’s economy expanded at 5.1% y/y in the second quarter of this year. The production of the industrial sector, which rose 6.7% y/y in Q1, increased by 6.3 y/y in the second quarter while manufacturing output was up by 6% y/y in the quarter versus a 5.9% y/y expansion in Q1.

Turkey’s manufacturing boom has very much been founded on the government's TRY250bn ($72bn) credit guarantee fund (CGF), now almost depleted. The capacity utilisation rate (CUR) of Turkish manufacturing industry edged up to 79% in September from 78.8% in August. GDP growth will probably be around 5.5% this year, exceeding the government target of 4.4%, Turkish Economy Minister Nihat Zeybekci said on September 11 after the latest data showed that the Turkish economy expanded at 5.1% y/y in the second quarter of 2017.