Taiwan close to manufacturing peak
Taiwan's manufacturing activity may be reaching its peak but August data was actually better than expected
| 3.25% |
August Manufacturing Activity YoYING forecast: 2.3% ; prior- 2.3% |
| Better than expected | |
Disappointing export orders, especially from information and communication products will have a direct negative impact on production in coming months. The economy has relied a lot on manufacturing electronic parts and computer electronic & optical equipment. A slowdown of growth in these two items, which has been reflected in slower export orders growth, would hold back overall manufacturing growth.
However, better than expected industrial production data gives more room for CBC to stay put. We think monetary policy will not change in 2017. But even if the CBC did cut, monetary policy could only support the economy temporarily, bearing in mind policy interest rates are already low at 1.375%.
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
Download
Download snap