Taiwan: Industrial production nearly flatlines in June
Industrial output weakened notably in June, expanding a mere 0.4% over the previous year, down from May’s upwardly revised 7.6% increase (previously reported: +7.1% year-on-year).
The weaker print in June was primarily driven by softer manufacturing output—which represents more than 90% of total industrial production—on the back of a slowdown in the production of electrical parts and components. The manufacturing sector grew 0.7% in annual terms in June, down from the revised 7.9% expansion logged in May (previously reported: +7.2% yoy). Moreover, the mining and quarrying sector posted its ninth consecutive contraction in June, and electricity and gas supply also declined. Meanwhile, water supply activity accelerated.
On a seasonally-adjusted month-on-month basis, industrial output contracted 2.7% in June, contrasting May’s revised 1.7% expansion (previously reported: +1.3% month-on-month). Annual average growth in industrial production decreased to 4.1% in June from 4.4% in May.