The Ministry of Economic Affairs yesterday released new figures that underscored the extent of Taiwan’s economic recovery, with industrial production climbing 35.2 percent last month, the sixth consecutive monthly increase.
Industrial production, however, was down 13.95 percent from January, because of fewer working days as a result of the nine-day Lunar New Year’s holiday, the ministry said.
“Surging demand for consumer electronics last month spurred strong sales of semiconductors, panels and electronic components,” Fung Tein-chi (馮田琪), deputy director-general of the ministry’s statistics department, said at a press briefing.
Manufacturing production — which accounts for 80 percent of total industrial output and includes products from the electronics, chemicals, food and textile sectors — grew 36.4 percent last month.
Output in the mining and quarrying industries dropped 8.15 percent, while the construction sector increased 44.68 percent.
Combined industrial output for the first two months increased 51.9 percent from last year, the department said.
The report came after the department last week reported a year-on-year increase in combined export orders of 52.9 percent in the first two months.
“Taiwan’s industrial production is the backbone of the island’s economy and its solid recovery has helped the island recover from its deep recession,” Tine Olsen, a Sydney-based economist at Moody’s Economy.com, wrote in a note released yesterday.
“The Lunar New Year celebrations in February slowed orders and production, so looking at the combined results from January and February provides a better overview of the direction of output,” he said.
Meanwhile, there was also an increase in local consumption last month as more people proved willing to spend, said a separate report released by the ministry yesterday.
Total sales for the wholesale, retail, food and beverage sectors hit NT$991.2 billion (US$30 billion), up 9.5 percent from last year but down 7.6 percent from January, the ministry’s statistics department said.
Combined sales for the first two months of the year increased 11.63 percent to NT$2.06 trillion, the department said.
The retail sector posted the highest jump in revenues with 17.5 percent to NT$284.5 billion, as consumers went on a shopping spree to usher in the New Year, Feng said.
The food and beverage sector posted year-on-year sales growth of 13.9 percent to NT$31 billion. In this sector, sales in restaurants rose 15.4 percent while those of drink stores were up 5.23 percent.
Revenue growth in the wholesale sector was the weakest at 6.3 percent or NT$675.7 billion. Sub-sectors such as clothing, home appliances, drugs and cosmetics, entertainment and education products all saw a slump, the department said.
Olsen noted that wholesale trade had gained support from higher industrial production and external demand. Therefore, “One downside risk is softer external demand, which would slow foreign trade and wholesale trade,” she said.
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