Sat, Aug 24, 2019 - Page 12 News List

Industrial production expands 3.03%

TECH-DRIVEN:The annual increase last month was led by record sales of electronics and optical components, bolstered by demand from the US and 5G development

By Kwan Shin-han  /  Staff reporter

Bolstered by robust sales of electronics, optical products and integrated circuits, industrial production increased 3.03 percent annually last month, ahead of the high season for technology products, the Ministry of Economic Affairs said yesterday.

Electronics and optical components reported record sales last month, surging 34.82 percent from a year earlier, the ministry said, adding that sales expanded for a 10th consecutive month.

“Industrial production was better than expected, thanks to demand for electronics from the US and 5G development, which boosted shipments of servers, switches, routers and wireless communication devices,” Department of Statistics Director-General Wang Shu-chuan (王淑娟) told a news conference.

Shipments of camera lenses also swelled, as new-generation smartphones are about to enter the market, she said.

The electronics industry saw the fastest growth in nine months, up 4.83 percent year-on-year, with the integrated circuit sector reporting a 12.39 percent increase annually as 5G applications gained momentum and demand for high-end semiconductors used in consumer electronics remained robust, Wang said.

However, sales of LCD panels and related components dropped 14.6 percent annually due to intensifying competition from China, she said.

Sales of machinery equipment declined 13.98 percent year-on-year, as the US-China trade dispute slowed companies’ expansion, the ministry said.

As demand and prices for raw materials remained soft, the base metal and chemical material sectors saw production weakening 8.84 percent and 1.47 percent respectively, the ministry said.

A separate ministry report showed that the wholesale sector’s revenue edged up 1 percent from a year earlier to NT$905.4 billion (US$28.83 billion) last month due to better demand for machinery and automobiles.

Machinery sales increased 3.7 percent year-on-year on the back of higher shipments of new mobile phones and related electronics, while the automotive sector rose 10.7 percent annually, aided by sales of new vehicle models and marketing promotions ahead of the Ghost Festival, the ministry said.

However, building materials and chemicals sales declined 5.7 percent and 7.2 percent respectively last month due to weak demand, it said.

The retail sector saw faster growth of 6.7 percent year-on-year to NT$326.8 billion last month, thanks to robust sales of cars and motorbikes, which soared 18.8 percent annually ahead of Ghost Month, the ministry said, adding that increasing e-commerce and catalogue sales of cosmetic products and drugs also lent support.

The opening of new shopping centers and holilday shopping boosted revenue from general merchandise by 6.1 percent year-on-year, it said.

Sales from the food and beverage sector grew 5 percent annually to NT$69.7 billion, boosted by higher sales from restaurants, expansion of tea shops and growing sales of beverages due to the hot weather, it said.

“Although Chinese tourist numbers might drop going forward, the blow would be less serious compared with 2016, as local companies and restaurants have adjusted their response strategies such as providing discounts for domestic customers and targeting tourists from other countries,” Wang said.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top