Taiwan Industry May 2017


Taiwan: Industrial production returns to growth in May

June 23, 2017

Industrial output returned to year-on-year growth in May on the back of a moderate pick-up in manufacturing production. Industrial output was up 0.8% in annual terms, a contrast to last month’s 0.1% unexpected decline and slightly above market analysts’ expectations, who had projected a milder rebound of 0.5% growth.

The minor improvement in manufacturing output, which accounts for 93% of overall industrial production, was the result of a noteworthy rebound in the chemical materials industry. Meanwhile, electronic parts and components, the largest single industry in the manufacturing sector, continued to ease through May as Chinese demand for Taiwanese components continued to ebb. Although production is expected to recover some lost ground later this year due to the launching of the iPhone 8, May’s report confirms our panel’s forecast of a deceleration in economic growth in Q2 after Q1’s solid performance.

Industrial production rose 0.2% over the previous month in seasonally-adjusted terms in May, contrasting the revised 2.0% decline in April (previously reported: -2.5% month-on-month). Annual average growth in industrial production inched down from 4.2% in April to 4.1% in May, the highest level since July 2015.

Analysts participating in our Consensus Forecast expect industrial production to continue to recover this year and to expand 3.7%, which is unchanged from last month’s forecast. For 2018, participants expect industrial output to moderate and expand 2.7%.

Author:, Economist

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Taiwan Industry Chart

Taiwan Industry May 2017

Note: Year-on-year and annual average var. of industrial production index in %.
Source: Directorate-General of Budget, Accounting & Statistics (DGBAS).

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