Taiwan industrial production inched higher by 1.9%

But the current pressure from China's slowing economy will keep Taiwan's outlook threatened.

According to BBVA Research, industrial production for August rose by 1.9% y/y (consensus: -0.6% y/y) on increasing mining and manufacturing production.

"Looking ahead, the ongoing slowdown in China will likely keep Taiwan’s IP outlook under pressure. Despite slowing growth, Taiwan’s policymakers kept interest rates on hold last week, after inflation rose sharply to 3.4% in August from 2.5% y/y in July. Also today, Taiwan reported unemployment of 4.29% for August, up marginally from 4.25% for July," BBVA Reseach said.

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