Taiwan: Industrial production growth slows in November
December 22, 2017
Industrial output grew 0.9% in annual terms in November, a slowdown from the revised 2.5% expansion recorded in September (previous estimate: +2.9% year-on-year). The reading also disappointed market analysts, who had expected industrial production to expand 2.1% in year-on-year terms.
Manufacturing production, which accounts for more than 90% of total industrial production in Taiwan, grew 1.2% year-on-year in November, down from a 3.1% expansion a month earlier. Looking at heavyweight sub-sectors, the electronic components industry grew only 0.1%, due to weak demand for semiconductor wafers. Production in the computer and optoelectronics segment fell 4.2% year-on-year in November on the back of increasing global competition from handheld and virtual reality devices. On the other hand, the machinery industry grew 17.6% over the same period last year as companies worldwide ramp up their efforts to automate factories.
In seasonally-adjusted terms, industrial production increased 0.6% over the previous month in November, contrasting the 2.2% decline recorded in October. Annual average growth in industrial production stood at 3.4% in November, a 0.7 percentage-point decrease from October´s 4.1%, and the weakest reading in nine months.
Author: Joffrey Simonet, Economist