Taiwan's industrial production to slip further from 2.4% in June

Domestic trade is also likely to slump as confidence in spending weakened for four straight months.

According to Moody's Analytics Asia Pacific Review, amid weakness in production and exports, domestic trade likely remained soft in July after falling 0.9% y/y in June. Taiwan is an open, tradeexposed economy dependent on global demand to fuel growth. As global growth has lost steam, so too has domestic spending. Confidence weakened for a fourth straight month in July as external weakness dampened employment and income prospects.

Here's more from Moody's:

Industrial production likely remained lower in year‐on‐year terms in July after falling 2.4% y/y in June. The slump in tech demand has spilled over into the third quarter, keeping production well below trend. Other industries such as basic metals and machinery and equipment have also dragged on production because of weak external demand, particularly from China.

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