Taiwan industrial output hits new high in October

2014-11-26

Taiwan’s industrial production index climbed 8.97 percent year on year to an all-time high of 112.56 in October on the back of peak-season demand in Europe and North America, according to the Ministry of Economic Affairs Nov. 24.

“Industrial output rose for the ninth consecutive month, reflecting expanding demand across various sectors,” said Yang Kuei-hsien, deputy director-general of the MOEA Department of Statistics.

Among the five subindexes comprising the overall benchmark, manufacturing, which contributes around 9.28 percent of the weighting, gained 9 percent from a year ago to 112.10.

Construction surged 35.66 percent, while quarrying and mineral extraction and water supply also reported increases of 3.72 percent and 2.64 percent, respectively. Electricity and gas supply dropped 2.46 percent.

A breakdown of manufacturing reveals the biggest improvers as computers, electronics and optical products at 17.69 percent; electronic components and parts, 16.34 percent; and machinery and equipment, 14.93 percent.

For the first 10 months of the year, output climbed 5.94 percent, with manufacturing and construction delivering especially strong performances of 6.28 percent and 10.44 percent growth, respectively.

Yang said Taiwan’s industrial production is expected to see further expansion in the fourth quarter as global demand continues to rise for smart wearable devices and Internet of Things applications.

Separately, the MOEA said the latest commerce revenues reached a record NT$1.25 trillion (US$40.43 billion) in October, up 1.5 percent from last year.

By sector, retail climbed 3.3 percent, followed by food services and beverage at 0.9 percent and wholesales at 0.8 percent.

Yang said this upward trend indicates that public confidence in food security is returning after the oil scandals in previous months. “As such, we expect commercial activity to pick up accordingly for the rest of the year.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=224444&CtNode=413)