Cityscape at night in Taiwan

Taiwan Industry January 2018

Taiwan: Industrial production growth jumps in January on low base effect

Industrial output grew 10.9% in annual terms in January, shooting up from the revised 1.4% expansion registered in December (previously reported: +1.2% year-on-year). This reading vastly overshot analysts’ expectations of a 5.0% growth rate. However, it is important to note that the magnitude of the year-on-year growth surge in January is partly explained by a low base effect, as the Lunar New Year fell in January last year, which moderated industrial production. In 2018, the Lunar New Year happened in February, so it is likely that February industrial production growth will be negative due to a lower number of working days in the month this year.

Manufacturing production, which accounts for more than nine-tenths of total industrial output, expanded 10.8% year-on-year in January, up from December’s 1.1% rise. All sub-components of the manufacturing index saw output growth increase in the month, again due to the low base effect compared to 2017.

Given the large one-off swings in the annual data, the month-on-month figures offer complementary insights on how well the industrial sector performed at the beginning of the year. On a seasonally-adjusted basis, industrial output grew 1.0% over the previous month in January, doubling the growth pace from December’s 0.5%. Annual average growth in industrial production, meanwhile, was 3.7%, up from 3.0% in December.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest