Taiwan Industrial production May 2021

Taiwan

Taiwan: Industrial output growth improves in May

June 23, 2021

Industrial output rose 16.5% in year-on-year terms in May, which followed April's 14.1% increase. Looking at the details of the release, May's pickup was broad-based. Manufacturing and electricity and gas supply production accelerated, while water supply activity contracted at a softer rate.

On a seasonally-adjusted monthly basis, industrial production rebounded, rising 2.3% in May (April: -0.9% mom). Meanwhile, the trend improved significantly, with the annual average growth of industrial production coming in at plus 9.9%, up from April's 8.7%.

Delving deeper into the reading, Iris Pang, Greater China economist at ING, painted a nuanced picture:

“Most of the growth came from non-core manufacturing activities, including LED panels, chemical raw materials, equipment and automobile parts, which combined contributed to 39% of total manufacturing production. The core item, and the most important one—integrated circuits—only grew by 12.59% year-on-year, which is below the headline growth rate in May, and also slower than the growth of integrated circuits seen in April, at 16.02% year-on-year.”

Nevertheless, over 2021 as a whole the export-oriented industrial sector is expected to be the key growth driver of Taiwan’s economy, thanks to strong electronics demand abroad. Panelists see industrial output expanding 11.2% in 2021, which is up 0.2 percentage points from last month’s forecast, and 4.3% in 2022.


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Taiwan Industry May 2021 0

Note: Year-on-year and annual average variation of industrial production index in %.
Source: Ministry of Economic Affairs.


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