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Industrial production up over 7% in May (update)

2018/06/25 19:26:35

Taipei, June 25 (CNA) Taiwan's industrial production in May rose more than 7 percent from a year earlier as a growing global economy kept demand strong for goods made in Taiwan, the Ministry of Economic Affairs (MOEA) said Monday.

The industrial production index rose for the 24th of the last 25 months in May, gaining 7.05 percent from a year earlier to 111.10.

The only month the index fell during its prolonged hot streak was in February 2018, when there were fewer working days during the month than a year earlier because the Lunar New Year holiday fell in February this year rather than in late January last year.

The sub-index for the local manufacturing sector, which accounts for more than 90 percent of total industrial production, rose 7.24 percent to 111.12, data compiled by the MOEA showed.

In the first five months of the year, Taiwan's industrial production rose 5.37 percent from a year earlier, with production of the manufacturing sector up 5.47 percent, according to the MOEA.

Wang Shu-chuan (王淑娟), deputy head of the MOEA's statistics department, said the growth momentum of the manufacturing sector should continue in June because of an increase in tech applications.

Wang said the manufacturing sector's output value could end up growing more than 6 percent in the quarter from a year earlier.

In May, the production of Taiwan's electronics component and semiconductor sectors rose 9.38 percent and 17.56 percent, respectively, year-on-year, boosted by major smartphone brands' efforts to launch new models and an increase in emerging applications, the MOEA said.

However, flat panel industry production fell 7.77 percent in May from a year earlier because of lower large-sized screen prices, the MOEA said.

Rising international crude oil prices pushed production in the chemical materials industry up 0.82 percent year-on-year in May, the 13th straight month of growth, while base metal industry production rose 2.92 percent because of solid global demand for steel, the MOEA data showed.

The machinery industry posted a 17.50 percent year-on-year increase in production in May, as the global electronics sector scrambled to expand production capacity and demand for automation was on the rise, the data showed.

The automotive/auto component industry saw production rise 7.16 percent year-on-year in May, ending a three-month losing streak, helped by an increase in the output value of passenger and commercial vehicles, the MOEA said.

(By Liao Yu-yang and Frances Huang)