Industrial production last month fell 1.22 percent compared with a year earlier, ending a nine-month streak of consecutive gains amid continued uncertainties about ongoing trade disputes, the Ministry of Economic Affairs said yesterday.
Last month’s industrial production index dropped 1.15 percent from November to 110.31 points, marking a turning point from gains made in the first 10 months of last year.
The sub-index for the manufacturing sector, which accounts for more than 90 percent of total industrial production, declined at a quicker rate, dropping 1.45 percent from a year earlier to 111.42 points.
Electronic components production, representing the bulk of the manufacturing sector, fell 2.37 percent annually due to slower-than-expected demand for consumer electronics, the ministry said, adding that customers have begun to tighten their inventories.
A high base set in 2017 made the decline more pronounced, it said.
Semiconductor output dipped 0.01 percent annually last month after making consecutive gains in the past 14 months.
LCD displays continued to be pressured by a persistent price slump, dropping 7.41 percent annually, while LEDs, solar batteries and printed circuit boards also declined, as unfavorable market conditions led to output cuts.
Chemical production dropped 2.1 percent annually due to falling oil prices and disruptions from planned maintenance at a number of plants, while basic metal slid 1.79 percent annually due to weaker demand.
Computer and optoelectronics production was the only bright spot last month, logging an 11.93 percent annual gain as major customers shifted away from Chinese suppliers to avoid increased US tariffs, Department of Statistics Deputy Director-General Wang Shu-chuan (王淑娟) told a news conference in Taipei.
Demand for locally made computers, servers and communications equipment has been up since October last year, particularly from US-based customers, she said.
“Displaced orders from China should continue to benefit local suppliers until the end of this quarter,” Wang said, adding that macroeconomic headwinds could result in a 2.5 to 4 percent decline in the manufacturing sub-index at the end of this month.
Automobile and auto components plunged 16.81 percent annually due to the low popularity of local brands among Taiwanese consumers, while exporters were pressured by anemic external demand growth, the department said.
Some of the declines were offset by a jump in commercial vehicles, as businesses rush to update their fleets ahead of tighter environmental regulations, it said.
Still, last year’s industrial output rose 3.65 percent annually to 108.83 points, which was a new record and a trend found in most sub-indices, the department’s data showed.
On domestic trade, wholesale revenue last month fell 5.2 percent from a month earlier and 4.1 percent annually to NT$850.1 billion (US$27.52 billion), dragged down by a contraction in smartphones, memory and chemicals.
During the same period, retail rose 3.5 percent from a month earlier and 1.9 percent annually to NT$387.2 billion on the back of year-end gift buying, while restaurant and dining revenue rose 15.2 percent from a month earlier and 6.2 percent annually to NT$42.8 billion.
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