Taiwan IP growth likely to slower in April on weak export sales

Taiwan is scheduled to release April industrial production (IP) data on 25 May. April IP growth likely slowed to 1.2% y/y from 6.49% in March - marking the softest y/y gain since early 2014 on weak external demand. 


Total exports may have declined more than the market expected, by 11.7% y/y in April, mainly on flagging mainland China demand, while weak global oil prices likely had a negative impact on certain exports, such as minerals and chemical materials, expects Stnadard Chartered.

Furthermore, total capital goods imports - deemed a key measure of producers' confidence - likely stayed in negative growth for the third consecutive month. If the trend persists in H2-2015, this may indicate a worrying shift lower in manufacturing confidence, added Stnadard Chartered.