Taiwan: Industrial output decelerates sharply in June
July 25, 2011
In June, industrial production expanded a subdued 3.6% over the same month last year, well below the already moderate 7.6% increase in May. In part, the reading reflected an unfavourable base effect, as industrial output expanded 24.9% in June 2010. In addition, the slump reflects the scarcity of supplies related to the 11 March disasters in Japan that began to take effect in April. The slowdown was more severe than expected by market analysts, who saw industrial output growth declining only to 6.7%. A month-on-month comparison points to an even deeper deterioration than the deceleration suggested by the annual figures, as industrial production contracted 3.23% over the previous month in seasonally adjusted terms, which followed on a 0.87% drop in May. Consequently, the trend in industrial output also continues to point downwards, with annual average growth in industrial production stepping down from 15.8% in May to 14.0% in June. The government anticipates GDP to expand 5.06% in 2011.