Taiwan: Industrial production plummets in February
March 25, 2013
In February, industrial production contracted 11.4% over the same month last year. The figure contrasted the 19.0% expansion seen in January and undershot market expectations, which had anticipated industrial production to fall 9.6%. The monthly reading reflects slower growth in the manufacturing sector as well as a sharp drop in mining and quarrying output. That said, the drop largely reflects the impact of factories shutting down for the Chinese New Year holiday, which fell in February this year.
A month-on-month comparison corroborates the deterioration suggested by the annual figures, as industrial production contracted 0.39% over the previous month in seasonally adjusted terms, which contrasted the 0.68% rise recorded in January.
As a result of the sharp contraction tailled in February, the trend is now pointing downwards, with annual average variation in in industrial production falling from 3.1% in January to 1.5% in February.
FocusEconomics Consensus Forecast panellists expect industrial production to grow 4.7% this year, which is down 0.6 percentage points from last month's forecast. For 2014, the panel expects industrial production to grow 5.9%.