Taiwan’s industrial production grows for 3rd straight month (update)

Taipei-Taiwan's industrial production rose year-on-year for the third consecutive month in July on the back of strong global demand for electronic gadgets as the world's economy remained on a recovery track, statistics from the Ministry of Economic Affairs (MOEA) showed Wednesday.

The data showed that the July industrial production index rose 2.38 percent from a year earlier to 111.84 after an increase of 3.53 percent in June.

The data indicated that Taiwan has been benefiting from a peak season in the global high-tech industry in the third quarter, which boosted its exports, while the local old economy sector has also been riding a rebound in product prices, market analysts said.

The sub-index of the manufacturing sector, which accounts for more than 90 percent of total industrial production, grew 2.94 percent in July from a year earlier, marking the 15th consecutive month of year-on-year growth, the data indicated.

Month-on-month, Taiwan's industrial production rose 0.06 percent, while production in the manufacturing sector fell 0.07 percent due to a reduction in the number of business days as a result of two typhoons, the MOEA said.

Wang Shu-chuan, deputy director of the MOEA's statistics department, said the year-on-year increase in production in the manufacturing sector fell just short of the ministry's 4-5 percent forecast.

In the manufacturing sector, the production of electronics component companies rose 5.64 percent from a year earlier in July, with semiconductor and flat panel manufacturers showing a 9.61 percent and 10.03 percent year-on-year increase, respectively, according to the MOEA data.

The IC industry was boosted by solid demand for handheld devices and other consumer electronics, according to the data.

However, production of computer, optoelectronics and other electronics device suppliers fell 7.26 percent in July from a year earlier due to reduced interest in virtual reality devices and smart watches and a shortage of critical components, the data indicated.

The chemical material industry saw its production rise 1.02 percent in July from a year earlier on the back of stable international crude oil prices, while production of the base metal industry grew 2.50 percent in reflection of a relatively low comparison base over the same period last year, the MOEA said.

Production of the machinery industry rose 8.24 percent from a year earlier in July as global manufacturers turned more to automation, while the auto and auto parts industry suffered a decline of 2.75 percent in production due to declining vehicle sales, the MOEA said.

Looking ahead, Wang said that the global economic fundamentals will continue to improve as international electronics brands launch new products later in the year, the growth of Taiwan's industrial production is expected continue in the second half of the year.

Source: Overseas Community Affairs Council