Taiwan: Industrial production slips back into contraction in July
August 23, 2016
Taiwan’s industrial production decreased in July for the first time after two consecutive months of increase. The industrial production index fell 0.3% over the same month last year, which contrasted the revised 1.1% increase observed in June (previously reported: +0.9% year-on-year) and the 1.7% expansion the markets had expected in July.
Most categories that comprise the index recorded contractions or slowdowns. Mining and quarrying, electricity and gas distribution and water supply all contracted further in July. Construction decreased a massive 29.8% year-on-year in July (June: -5.3% year-on-year), whereas manufacturing production slowed from a 1.8% increase in June to a 0.6% expansion in July.
A month-on-month comparison shows that industrial output rose a seasonally-adjusted 0.4% in July, which contrasted the 0.1% contraction observed in June. Meanwhile, the annual average variation in industrial production inched up from minus 3.7% to minus 3.5%.
Author: Ricardo Aceves, Senior Economist