Taiwan: Industrial production growth accelerates in September
October 23, 2017
Industrial output grew 5.2% in year-on-year terms in September, which marked an improvement over the revised 3.3% expansion recorded in August (previously reported: +3.2% year-on-year) and the highest print in seven months. The reading, however, fell slightly short of market expectations of a 5.4% increase. Faster output growth reflected improved dynamics in the country’s all-important manufacturing sector.
Manufacturing production, which accounts for 93% of total industrial production on the island, accelerated from 4.1% growth in August to a 5.4% expansion in September. This reflected strong production levels for manufactured goods other than electronic parts, the output of which shrunk in September on weak smartphone demand. Other than manufacturing, mining and quarrying output rose 12.0% in September from the same month of the previous year, while production of electricity and gas supply shrunk 2.8%.
In seasonally-adjusted terms, industrial production rose 1.3% over the previous month in September, which followed a 2.3% month-on-month increase recorded in August. Annual average growth in industrial production inched up to 4.2% in September from 4.1% in August. Annual average industrial output growth had reached a two-year high of 4.5% in July.
Author: David Ampudia, Economist