Taiwan’s industrial production in February ends 9-month rise

Taipei, Taiwan's industrial production for February registered a slight year-on-year fall, ending nine consecutive months of increases, mainly due to fewer working days last month, the Ministry of Economic Affairs (MOEA) said Friday.

In February, the industrial production index fell 1.93 percent from a year earlier to 94.29 after a year-on-year increase of 10.86 percent in January.

According to the ministry, the reduced number of working days, as a result of the six-day Lunar New Year holiday Feb. 15-20, is the main reason for the fall.

Despite that, the electronic components, chemical materials and machinery sectors all posted positive growth, with increases of 3.28 percent, 3.24 percent and 3.42 percent, respectively from a year earlier, deputy head of the MOEA's statistics department Wang Shu-chuan (???) said.

This can be attributed to the increase in smart technology applications, which have helped fuel growth in those sectors, Wang explained.

As the global economy slowly recovers, a majority of global financial institutions have a positive outlook on Taiwan's manufacturing industry, she added.

However, with the increasing likelihood of a trade war between the United States and China, the department head said the global economy faces growing uncertainty.

As for Taiwan, the sector that could be most impacted by a trade war is electronic components, which account for about one third of the country's total exports, with the majority being used as part of finished products, she said.

Putting the issue of U.S-China trade tensions to one side, the statistics department said the outlook for industrial production in Taiwan for the second quarter currently remains positive.

Source: Focus Taiwan News Channel