Turkey’s calendar-adjusted industrial production index gained 6.2% y/y in April, with growth slowing for the fourth consecutive month, data from national statistics office TUIK showed on June 13.

Markets had expected 5.65% growth, according to a Reuters poll.

Industrial production in Turkey has now stayed in annual growth territory for an uninterrupted 19 months running from October 2016 to April this year. Growth peaked with the 14.7% gain seen last July due to the base effect caused by the failed coup attempt in July 2016, after which Turkey hit an economic soft spot.

A 13.7% y/y rise was posted in December and the annual growth rate has declined since then.

Industrial production grew 8.8% in the first quarter of 2018, showing no real change of pace compared to the last quarter of 2017, according to the latest GDP data.

Turkey’s Manufacturing Purchasing Managers' Index (PMI) dropped further into the red falling from 48.9 in April to 46.4 in May—its lowest level since April 2009, IHS Markit said on June 1.

Average annual industrial production growth quickened to 8.9% in 2017 from 3.4% in 2016, according to TUIK’s revised series of data. The previous data set pointed to average annual growth of 6.3% in 2017 and 1.8% in 2016.

Turkey’s manufacturing boom has been substantially founded on the government's TRY250bn (€56.8bn) credit guarantee fund (CGF) for backstopping bank loans to businesses. Following the attempted coup and the brake it put on economic growth, Turkey spurred the economy by upping spending across the board, hiking wages, pouring capital into investments and guaranteeing loans with the CGF.

State-backed incentives have lost pace in 2018 despite the upcoming elections scheduled for June 24.

The government is targeting annual GDP growth of 5% from 2017 to 2020.