Industrial production drops in June for 2nd month yearonyear

Taipei, Taiwan's industrial production index in June posted its second consecutive monthly yearonyear decrease due mainly to slow global economic growth, the Ministry of Economic Affairs (MOEA) said Tuesday.

The industrial production index in June fell 0.39 percent from a year earlier to 107.02, data compiled by the MOEA showed.

The subindex for the manufacturing sector, which accounts for more than 90 percent of the country's total industrial production, decreased 0.61 percent from a year earlier to 106.78, the data indicated.

On a monthtomonth basis, Taiwan's industrial production index dropped 1.40 percent in June, while the subindex for the manufacturing sector also fell 1.77 percent.

After seasonal adjustments, industrial production rose 0.76 percent in June from a month earlier, and the manufacturing sector subindex grew 0.80 percent monthonmonth, according to the data.

In the first six months of 2019, Taiwan's industrial production was down 2.46 percent from a year earlier, while production generated by the local manufacturing sector fell 2.60 percent yearonyear, according to the data.

Amid a slowdown in economic growth, industrial production and export orders this year have both posted declines from last year.

Although the industrial production index in April saw more than 1 percent growth from a year earlier, the index in June posted an annual fall for the second consecutive month due to sluggish economic environment and a high comparison basis.

The MOEA forecasts that with the arrival of the peak shipping season in the third and four quarters, the decline in the industrial production index could be smaller.

However, the negative impact of the U.S.China trade war and a trade dispute between Japan and South Korea are likely to weigh on the prospects for industrial production, the ministry said.

Source: Focus Taiwan News Channel