The industrial production index last month expanded 2.15 percent year-on-year to 139.02, marking the slowest growth in about 21 months, as traditional industries faced production setbacks due to power disruptions, the Ministry of Economic Affairs said yesterday.
The manufacturing production index, a major contributor to industrial production, rose 1.95 percent last month to 142.03.
Although it was the index’s strongest March performance, it fell short of the ministry’s estimate of an expansion of 3.4 to 6.2 percent. The ministry attributed the weaker growth to a higher comparison base and the inventory digestion cycle faced by electronic component makers.
Taipei Times file photo.
Last quarter as a whole, the industrial production index climbed 6.55 percent year-on-year to 133.78, extending an upcycle that started in the third quarter of 2019, the ministry said.
The ministry expects the growth momentum to remain resilient this month amid demand for chips used in high-performance computing devices, such as servers, Internet of Things and automotive devices, Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) told a virtual news conference yesterday.
The manufacturing production index is expected to rise between 5 and 8.2 percent annually, indicating that the sector might be on course to reach its 27th consecutive month of growth, Huang said.
Nevertheless, a high comparison base would continue to constrain the sector’s growth rate, he said.
The manufacturing sector registered single-digit percentage growth for a fourth straight month last month. Last year, the sector’s production increased at an average rate of 14.26 percent from the previous year.
“We are closely monitoring whether the slowing global trade as estimated by the WTO and IMF will affect demand for local manufacturers, given the war in Ukraine, COVID-19 lockdowns in China and supply chain bottlenecks,” Huang said.
The production of electronic components climbed 3.78 percent last month, with semiconductor output registering the highest growth of 2.37 percent, while the output of computers and other electronics surged 26.09 percent, the ministry said.
The petrochemicals sector saw production decrease by 8.22 percent last month, compared with a contraction of 3.02 percent in February, as power blackouts and annual maintenance last month stymied production, the ministry said.
The sector has been in the doldrums since December last year, it added.
The production of basic metals was also affected by the power outages, as some manufacturers did not have a backup power supply, it said, adding that production fell 5.56 percent annually, marking the fourth month of decline.
Machinery production rose 9.55 percent, marking its best March performance, as the sector benefits from local semiconductor firms significantly expanding capacity, 5G infrastructure projects and an industrial automation trend.
The production of vehicles and automotive components picked up 3.93 percent, thanks to new vehicle launches and a renewed tax break, reversing a downward spiral since November last year, the ministry said.
Chip shortages continue to be a bottleneck for auto production, it added.
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