The nation’s industrial output last month contracted 0.31 percent annually, falling short of the government’s expectation as lackluster demand for Apple Inc’s iPhones curtailed camera lens orders, the Ministry of Economic Affairs said yesterday.
A setback in the housing sector also dragged down overall output.
The ministry expected industrial output to grow for a third straight month. However, the housing sector last month unexpectedly plunged about 30 percent annually, Department of Statistics Senior Executive Officer Wang Shou-yu (王守玉) told a news conference.
“This is very rare,” Wang said.
Manufacturing output, which accounts for 93 percent of total industrial output, grew just 0.65 percent annually, a smaller pickup than 1 percent expansion estimated by the ministry.
That is despite the manufacturing output expanding for a third consecutive month to the highest level since April last year, aided by robust demand for mobile phone chips.
“A drop in iPhone demand mostly reflects as weakness in the camera lens segment. Demand for camera lenses was quite strong during the same period last year,” Wang said.
Electronics and optoelectronic products, such as camera lenses, contracted 1.54 percent last month, while the semiconductors segment jumped 13.93 percent annually, ministry statistics showed.
Largan Precision Co (大立光) is a major camera lens supplier for Apple’s iPhones, while Taiwan Semiconductor Manufacturing Co (台積電) supplies chips for iPhones. Apple is widely expected to launch its new iPhone next month as the company usually unveils new products in September.
A 10 percent production cut by local steelmakers, machinery tool manufacturers and automakers also weighed on the manufacturing output, Wang said.
“Overall, we have not seen a significant sign to drive [the nation’s] industrial and manufacturing output, given the staggering global economy,” Wang said.
During the first seven months, industrial output shrank 1.95 percent annually due to a 2.08 percent annual decline in the manufacturing sector, statistics showed.
This month, manufacturing output is expected to expand 5 percent year-on-year, which will help industrial output to swing back to positive territory, Wang said.
China’s National Day holiday in October and new product launches by global electronics brands are to boost orders for electronic components such as chips, flat panels and camera lenses, the ministry said.
As a whole, industrial output will return to growth for the whole quarter this quarter, marking the first quarter of growth since the second quarter last year, the ministry said.
The nation’s wholesales contracted 1.5 percent annually to NT$804.2 billion (US$25.36 billion) last month, the smallest year-on-year decline since April last year, the ministry said in a separate statement.
The ministry cited sluggish demand for construction materials, including cement and steel, and cooling demand for precious metals as the reasons behind last month’s contraction.
Wholesales of machinery tools was a bright spot last month, returning to an annual growth of 0.8 percent, ending 17 months of decline, thanks to an increase in demand for logic and memory chips, the ministry said.
The retail sector last month rose 2.8 percent annually to NT$344.5 billion, boosted by promotional sales by department stores and an increase in demand during Ghost Month.
This month, wholesales are expected to increase 0.5 percent from last month, while retail sales are expected to increase 1 percent, curtailed by weak car sales during Ghost Month.
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