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Industrial production drops in June for 2nd month year-on-year

2019/07/23 18:35:10

Taipei, July 23 (CNA) Taiwan's industrial production index in June posted its second consecutive monthly year-on-year decrease due mainly to slow global economic growth, the Ministry of Economic Affairs (MOEA) said Tuesday.

The industrial production index in June fell 0.39 percent from a year earlier to 107.02, data compiled by the MOEA showed.

The sub-index for the manufacturing sector, which accounts for more than 90 percent of the country's total industrial production, decreased 0.61 percent from a year earlier to 106.78, the data indicated.

On a month-to-month basis, Taiwan's industrial production index dropped 1.40 percent in June, while the sub-index for the manufacturing sector also fell 1.77 percent.

After seasonal adjustments, industrial production rose 0.76 percent in June from a month earlier, and the manufacturing sector sub-index grew 0.80 percent month-on-month, according to the data.

In the first six months of 2019, Taiwan's industrial production was down 2.46 percent from a year earlier, while production generated by the local manufacturing sector fell 2.60 percent year-on-year, according to the data.

Amid a slowdown in economic growth, industrial production and export orders this year have both posted declines from last year.

Although the industrial production index in April saw more than 1 percent growth from a year earlier, the index in June posted an annual fall for the second consecutive month due to sluggish economic environment and a high comparison basis.

The MOEA forecasts that with the arrival of the peak shipping season in the third and four quarters, the decline in the industrial production index could be smaller.

However, the negative impact of the U.S.-China trade war and a trade dispute between Japan and South Korea are likely to weigh on the prospects for industrial production, the ministry said.

(By Liao Yu-yang and Evelyn Kao)
Enditem/AW