Taiwan: Industrial production slows in May
June 23, 2011
In May, industrial production expanded a moderate 7.8% over the same month last year. In part, the reading reflects an unfavourable base effect, as industrial output expanded 33.8% in May 2010. However, more importantly, the slowdown reflects a plunge in Japanese supply of components and raw materials that began to take effect the month before. In April, output expanded 7.2% year-on-year, which had marked a notable deceleration after industrial output grew at double-digit rates for 17 consecutive months. The expansion, nonetheless, overshot market expectations, which saw industrial output growth slowing further to 5.9%. A month-on-month comparison corroborates the deceleration suggested by the annual figures, as industrial production contracted 0.67% over the previous month in seasonally adjusted terms, which followed a 3.51% drop in April. Consequently, the trend in industrial output also continues to point downwards, with annual average growth in industrial production stepping down from 17.8% in April to 15.9% in May.