Taiwan: Industrial output records lowest expansion since February in July
Industrial output grew 13.9% compared to the same month a year earlier in July, which was a deterioration from June’s 18.0% increase. The result marked the worst reading since February. Looking at the details of the release, manufacturing production grew at a slower rate in July, while electricity and gas supply output gained momentum. Meanwhile, water supply output dropped at a milder rate.
On a seasonally-adjusted monthly basis, industrial production fell 1.7% in July (June: +2.3% mom), the worst result since February 2020. Meanwhile, the trend improved sizably, with the annual average growth of industrial production coming in at plus 11.7%, up from June’s 10.8%.
Despite July’s softer readings, the industrial sector should remain a key driver of economic activity ahead thanks to buoyant global semiconductor demand and elevated capital investment in the chip industry.