Taiwan's industrial production to slow over the spring festival month

Taiwan's industrial production (IP) is likely to have softened to 2.9% yoy in February from 8.1% yoy in January due to the shifting schedule of Lunar New Year. 

Combining the two month together, growth of industrial output on the island is expected to have slowed to 3.6% yoy from 7.8% yoy in December last year, marking softer growth in Q1. 

Societe Generale notes its forecasts as follows...

• We expect external demand to recover entering into spring, led by the US.
  
  
• In contrast, commercial sales are expected to have rebounded in February, thanks to expenditures during the Lunar New Year holidays. However, the negative headline CPI inflation might have capped sales growth at a low level of around 1-2% yoy. 
  
  
• Nonetheless, the outlook is brighter. The labour market continued to tighten in January. Consumer confidencerose to the record high in February. Thus, the strength in consumer demand persists.