Research: Taiwan's September Ip Growth Likely to have slowed Further
Quotes from Societe Generale Cross Asset Research:
-We expect Taiwan's industrial production to remain in the contraction zone in September after the disappointing reading in August (data to be released on 23rd October). Export orders, which usually lead industrial production by one month or more, disappointed in August, growing by just 0.5% yoy. The September trade data served as another reminder of the painfully slow recovery of the island's economy.
-Exports contracted sharply by 7% yoy, slowing from +3.6% yoy in August. The base effect certainly played a role, but the underlying trend of external demand also failed to strengthen further. By destination, export growth to China slumped the most to -10.9% yoy from +3.6% yoy in the previous month.
-By goods, the contribution from machineries & electrical equipments (ME) to headline growth fell from +2.5ppt to -0.5ppt. Hence, the chance of getting another soft data point for production seems fairly high.
news.instaforex.com »