Taiwan: Industrial output posts quickest growth since January in June
Industrial production increased 18.4% year-on-year in June (May: +16.9% yoy). The figure marked the strongest expansion since January. June’s upturn was largely due to an improvement in manufacturing and water supply output.
On a seasonally-adjusted monthly basis, industrial output rose at a faster rate of 2.6% in June (May: +2.5% mom). Meanwhile, the trend improved significantly, with the annual average growth of industrial production coming in at plus 10.8% in June, up from May’s 9.9% reading.
The industrial sector was seemingly impervious to the domestic Covid-19 outbreak and water shortages in Q2, and remained the key driver of economic activity thanks to buoyant global semiconductor demand. Industrial output should stay robust moving forward, aided by strong demand abroad and elevated capital investment in the chip industry.