Taiwan IP likely contracted further on weak exports

Taiwan industrial production posted a negative growth rate of -1.4% in June, likewise commercial sales posted -4.3% growth. Taiwan's export orders print slowed its decline slightly to -5% yoy in July from -5.8% yoy in June.

The manufacturing PMI rose fractionally to 47.1 in July from 46.3 in June, supported by improving domestic orders. The two reports together suggest that external demand remained soft in July. Industrial production likely continued to suffer from weak external demand and looks set to have decelerated further to -1.6% yoy in July from -1.4% yoy in June, says Societe Generale.