Industrial production may rise again in Sept.: MOEA
CNATAIPEI--Taiwan is expected to continue to report year-on-year growth in its industrial production index for September on the back of recovering exports, the Ministry of Economic Affairs (MOEA) said Saturday.
October 21, 2012, 12:01 am TWN
The MOEA said the anticipated growth in industrial production also reflects a relatively low comparison base recorded over the same period of last year.
The ministry is scheduled to release the September industrial production data Oct. 23.
In August, the industrial production index rose 1.89 percent from a year earlier to 136.60, which was also 1.80 percent higher than July, to hit the second highest level after 139.90 was recorded in March 2011.
The industrial production growth in August came largely after manufacturing activity improved with the sub-manufacturing index up 1.80 percent from July and up 2.02 percent from a year earlier on the back of an increase in electronics and chemical material production.
The MOEA said Taiwan's exports have experienced a revival after major central banks in the world, including the United States Federal Reserve, have been pumping funds into the market to boost the economy and lift global demand.
Taiwan's exports in September hit a 14-month high to stand at US$27.17 billion, after six consecutive months of year-on-year decline. The September exports rose 10 percent from a month earlier and also grew 10.4 percent from a year earlier.
Taiwan also stopped six months of year-on-year declines in export orders for September with the value totaling US$37.66 billion for the month, up 1.9 percent from a year earlier and up 3.9 percent from August.
The MOEA said due to the launch of new high-tech gadgets, such as handheld devices, production in the local electronics component sector is on the rise to boost manufacturing activity.
In addition, production of the local petrochemical sector has been gradually returning to a normal level, which is expected to make up the reduced output in the machinery sector, the ministry said.
According to a recent survey released by the ministry, 11.0 percent of the respondents believed industrial production for September will improve from August, while 66 percent of them thought the production climate will remain the same, and 23 percent expected a deterioration.
The Chung-Hua Institution for Economic Research, one of Taiwan's leading think tanks, said earlier this week that the local economy has showed signs of bottoming out in the third quarter and is expected to accelerate in the fourth quarter.
The think tank cut its forecast of Taiwan's economic growth for 2012 to 1.52 percent from an earlier estimate of 2.36 percent, but expected the growth will hit 3.59 percent for 2013. Taiwan industrial production may continue to grow in September