Taiwan: Decline in industrial output softens in September
Industrial production fell 6.7% year on year in September (August: -10.8% yoy). The print marked the best reading since August 2022. Looking at the details of the release, September’s softer drop was broad-based, with the manufacturing, electricity and gas supply and water supply sub-sectors all improving.
On a monthly basis, industrial output increased 0.7% in seasonally adjusted terms in September, which was well below August’s 2.9% expansion. Meanwhile, the trend improved modestly, with the annual average variation of industrial production coming in at minus 14.0%, up from August’s minus 14.1%.
Rising demand for AI and cloud applications, tech companies’ new product launches, and a tougher base effect have helped narrow the contraction in industrial output in recent months. This trend should continue going forward as the global destocking cycle runs its course, and the Consensus is for industrial production to return to growth in 2024.