Taiwan: Industrial production growth decelerates in July
August 23, 2017
Industrial output moderated from the solid 3.5% expansion recorded in June to a 2.4% rise in July on the back of softer output in the manufacturing sector, the mainstay of Taiwan’s economy. The reading also missed market expectations of a stronger 3.3% increase.
Manufacturing production, which accounts for 93% of total industrial production on the island, slowed from 4.1% in June to 2.9% in July as output in fabricated metal products and electronic products other than parts and components eased over the previous month. Other than manufacturing, mining and quarrying, output swung back into expansion with 7.6% growth in July, while the decline in electricity and gas supply was the smallest this year.
In seasonally-adjusted terms, industrial production declined 0.1% over the previous month in July, contrasting the solid 2.8% expansion registered in June. Annual average growth in industrial production rose from 4.1% in June to 4.5% in July, the highest level in two years.
Author: David Ampudia, Economist