Taiwan: Industrial production growth eases but remains strong
January 24, 2011
In December, industrial production expanded 18.2% over the same month last year. The figure was below the 19.2% expansion recorded in November but overshot market expectations, which had anticipated industrial output growing 13.0%. The expansion was driven mainly by the manufacturing sector, which rose 19.0% year-on-year, virtually unchanged from the 19.8% recorded in November. Meanwhile, mining and quarrying decelerated from a 21.7% expansion in November to grow 8.0% in December. Finally, electricity, gas and water supply added 2.8% (November: +6.0% yoy). A month-on-month comparison corroborates the slowdown suggested by the annual figures, as industrial production expanded 3.83% over the previous month in seasonally adjusted terms, which nearly halved the 6.52% expansion observed in November. After having pointed upwards for more than a year, the trend has changed in the last months. Following on a peak of 29.9% in October, annual average growth in industrial production stepped down to 28.7% in November and to 26.4% in December. The government anticipates GDP to expand 4.6% in 2011.