The industrial production index in January increased 15.98 percent year-on-year, the Ministry of Economic Affairs reported yesterday, ending 19 months of consecutive declines.
Industrial production measures the change in the value of output produced by manufacturers, utilities and mines.
The ministry attributed the increase to improvements in manufacturing, mining, and electricity and gas supply output, coupled with a less serious deterioration in water supply output.
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Manufacturing output, which accounted for 95.41 percent of the index, rose 16.63 percent annually in January, also ending a 19-month downtrend, the report said.
Output received a lift from robust demand for artificial intelligence (AI) applications, high-performance computing (HPC) and cloud data services, as well as the effect of firms stocking up ahead of the Lunar New Year holiday, it said.
However, the better-than-expected readings for industrial and manufacturing output were in part due to a lower comparison base, as the Lunar New Year holiday fell in January last year, which reduced the number of working days then, it said.
The ministry remains optimistic about a steady recovery in industrial and manufacturing output this year, thanks to robust demand prospects for AI, HPC, automotive electronics and high-end chips, the report said.
However, inflationary risks, the US-China rivalry, the Russia-Ukraine war and the Red Sea crisis would continue to weigh on the global economy, the ministry said, adding that a survey of local manufacturers found that production is expected to fall this month by 1.3 percent to 6.3 percent from a year earlier.
The computer and optical products industry reported the largest output increase of 35.3 percent in January, on the back of strong demand for servers, computer peripherals and handset camera lenses, ministry data showed.
The electronic components industry — which mainly comprises semiconductors and flat panels, and accounts for 49.57 percent of total manufacturing output — rose 10.73 percent, ending 16 months of consecutive declines, the report said.
In traditional industries, the effect of pre-holiday stocking helped boost output for base metals by 19.8 percent, chemical materials and fertilizers by 8.88 percent, and machinery manufacturers by 19.41 percent, the report said.
The automobile and auto parts industry remained a standout among traditional industries, with output surging 42.52 percent in January from a year earlier, mainly due to strong sales of several new vehicle models and rising orders for auto parts, it said.
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