The industrial production index rose 8.63 percent last month from the same period last year, as robust market demand and better macroeconomic conditions drove the production of electronics, machinery and motor vehicles, the Ministry of Economic Affairs said yesterday.
Industrial production during the April-to-June quarter hit the highest level in the nation’s history, rising 6.43 percent year-on-year and 10.19 percent quarter-on-quarter, the ministry said in a report.
That boosted cumulative industrial production during the first half of the year by 4.48 percent from the same period last year, the ministry said.
Manufacturing — which accounts for more than 90 percent of industrial output — grew 8.93 percent last month from a year earlier, but fell 1.63 percent from the previous month.
Driven by semiconductors, LED, optoelectronics, steel, machinery and automotive output, manufacturing for the second quarter rose 6.71 percent year-on-year, marking its fourth consecutive quarterly increase.
“Manufacturing is expected to continue expanding this quarter as the global economy is stabilizing, the auto market is gaining momentum, investment in machinery is robust and tech demand is growing stronger on the back of new product launches,” the ministry said.
“Nonetheless, competition from Chinese manufacturers and the upcoming finalization of the China and South Korea free-trade agreement, as well as slowing economic growth in emerging markets, geopolitical risk and intensifying competition in the tech industry are all negative variables,” it added.
Last month, strong demand for mobile devices and LED chips boosted the output of electronics by 13.05 percent from a year earlier, while machinery output grew 13.33 percent and the auto and auto parts sector soared 18.47 percent.
For this month, the ministry said about 71.6 percent of the manufacturers polled in its recent survey forecast their production would be flat this month from last month, while 14.3 percent expected production to fall and 14.2 percent predicted a rise in output.
Meanwhile, domestic commercial sales — which include the wholesale, retail and restaurant sectors — expanded for the 10th consecutive month to NT$1.23 trillion (US$41.07 billion) last month, the ministry said in a separate report.
Sales rose as a result of strong demand for handsets, PCs and LCD TVs, increased exports of stainless steel products, an upturn in car sales and the launch of summer drinks and FIFA World Cup-related products, the ministry said.
The ministry said up to 86 percent of firms polled forecast sales this month would be on a par with last month, while 8.7 percent predicted higher sales and 5.3 percent expected to post lower revenue.
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