Industrial production in Taiwan posted a year-on-year increase in November for the fourth consecutive month on the back of rising global consumption during the Christmas season and ahead of the Lunar New Year holiday in China, the Ministry of Economic Affairs (MOEA) said Friday.
A buying spree by consumers prompted international brands, such as handheld device vendors and wearable device suppliers, to build up their inventories, which in turn boosted orders for local manufacturers, most of whom are exports-oriented, the MOEA said.
Citing data, the ministry said that Taiwan's industrial production index for November rose 8.83 percent from a year earlier and also grew 1.79 percent from a month earlier to 111.27.
The November sub-index for the manufacturing sector, which accounts for more than 90 percent of local industrial production, rose 10.36 percent from a year earlier and also gained 2 percent from a month earlier, the statistics showed.
It was the seventh consecutive month for the manufacturing sub-index to grow year-on-year.
Industrial production in the electronics components industry meanwhile rose 18 percent from a year earlier, marking the fourth consecutive month for these manufacturers to report double-digit growth in production, the MOEA said.
The sector benefited from the solid semiconductor production, which soared 37.64 percent from a year earlier on the back of strong demand for chips used in communications, power management and flat panels, the MOEA added.
The MOEA said that the on-going peak effect at the end of the year is expected to boost industrial production in the manufacturing sector for December by about 6 percent from a year earlier and raise the index as a whole.
As for the chemical sector, production in November rose 5.25 percent from a year earlier as a spike in international crude oil prices pushed up petrochemical product prices that month, the ministry said.
Production in the base metal industry meanwhile rose 17.66 percent from a year earlier due to an increase in steel prices, which prompted downstream steel makers to rush to increase their stock, the ministry added.
At the same time, production in the machinery industry in November rose 5.19 percent from a year earlier, stopping a 16-month losing streak, reflecting the rising demand for automation and robotic devices, the MOEA said.
In the auto industry, growing needs for auto components and maintenance services pushed up production by 2.75 percent from a year earlier, the MOEA added.
Bucking the upturn, production in the computer/optoelectronics sector for November fell 3.65 percent from a year earlier amid escalating competition in the global market.
As for the first 11 months of this year, the industrial production index in Taiwan gained 0.95 percent from a year earlier, while the sub-index for the manufacturing sector rose 1.35 percent year-on-year, according to the MOEA.
Source: Focus Taiwan News Channel