Taiwan's industrial production to decelerate in April

Taiwan's HSBC manufacturing PMI declined to 49.2 in April from 51 in March. Output and new orders dropped, pointing to softer demand. Export growth deteriorated for the fourth consecutive month to -11.7% yoy in April from -4.2% yoy in Q1, suggesting weakening external sector. Fewer working days in April 2015 should also have a negative impact on the non-seasonally adjusted headline. 

"Considering all the above factors, industrial production (IP) growth is expected to have moderated to 3.9% yoy in April from 6.5% yoy in March. Meanwhile, commercial sales are expected to have decelerated further by -1.4% yoy in April after -0.7% yoy in March. The weakness probably stemmed from wholesales, of which prices were down 1.1% mom in April. That said, retail sales are likely to have strengthened from 1.3% yoy in March to 1.7% yoy in April, thanks to the modest higher CPI inflation, the buoyant consumer confidence and the tight labour market", says Societe Generale.