Local industrial production index hits new record
By John Liu, The China Post
August 26, 2014, 12:05 am TWN
TAIPEI, Taiwan -- Thanks to the local manufacturing sector's intensified production of products including semiconductors, LEDs, optical instruments, steel, petrochemicals, cars and machinery products, Taiwan's industrial production index hit a new single-month record in July.
The industrial production index of 112.26 represented a 6.08-percent growth year-on-year, according to a report released by the Ministry of Economic Affairs (MOEA) yesterday.
There were several sub-indices that also hit new records in July. Among them was the index of the manufacturing sector (112.27), which constitutes more than 90 percent of the industrial production index.
All the major four manufacturing industries — the metal and machinery industry, the IT electronics industry, the chemical industry and the commodities industry — grew across the board, while the index of the IT electronics industry (119.59) also reached a new record.
More specifically, the index of the electronic parts and components industry (129.86) and the index of the integrated circuit industry (154.15) also hit a monthly record in July.
Besides Manufacturing Sectors
In regard to sectors other than the manufacturing that make up the industrial production index, the electricity and natural gas supply industry grew 5.75 percent and the water supply industry grew 0.34 percent. However, the mining and quarrying industry dropped 15.37 percent while the construction industry went down 18.39 percent.
The output of the mining and quarrying sector saw a double-digit decline in July as a result of work interruptions from typhoons that recently passed Taiwan, said Yang Kuei-hsien (楊貴顯), deputy director general of the MOEA Department of Statistics. The construction industry also declined due to a relatively higher base period last year, Yang explained.
Business Revenues also Hit New Record
According to a separate report released by the MOEA yesterday, business revenues in July totaled NT$1.24 trillion, which was also a new single-month record. Business revenues grew 2.8 percent year-on-year, of which the wholesale sector, the retail sector and the food service sector grew 1.8 percent, 5.5 percent and 3.1 percent, respectively.
July's business revenues' growth was contributed to by a growing number of orders for computers, electronic parts and components, and air conditioners, according to the report.
With Father's Day, Mid-Autumn Festival and Ghost Festival occurring in August, the MOEA expects good sales performance to continue in throughout the month. However, as the car business enters its slow season in August, it is likely to offset some sales growth. All in all, the MOEA forecast that August's business revenues will decline from July, but they will continue to grow year-on-year.