Industrial production rises for 16th straight month in May

Taipei, June 23 (CNA) Industrial production for May rose from a year earlier, marking the 16th consecutive month of year-on-year growth as both tech exporters and old economy suppliers witnessed strong demand, with many economies reopening amid COVID-19, the Ministry of Economic Affairs (MOEA) said Wednesday.

Data compiled by the MOEA showed the industrial production index for May rose 16.51 percent from a year earlier to 128.63 after a 14.10 percent year-on-year increase in April.

The latest figures are the highest ever for May, according to the MOEA.

In May, the sub-index for the manufacturing sector, which accounts for more than 90 percent of total production, rose 17.28 percent from a year earlier to 129.81, marking the 16th straight month of year-on-year growth, the data indicated. The sub-index also hit a new high for May.

On a month-on-month basis, industrial production rose 4.31 percent and the sub-index for the manufacturing sector also grew 3.51 percent, the data showed.

Speaking to the press, MOEA Department of Statistics deputy chief Huang Wei-chieh (黃偉傑), said both tech and non-tech sectors reported double digit production growth in May as manufacturers remained unscathed amid domestically transmitted COVID-19 cases in the month.

The MOEA said production generated by electronic component suppliers rose 14.71 percent from a year earlier in May, marking the 18th straight month of double digit growth, as semiconductor suppliers benefited from strong demand for emerging technologies such as 5G applications and high performance computing devices.

The MOEA added that semiconductor suppliers saw production rise 12.59 percent from a year earlier in May, while production posted by flat panel makers soared 21.75 percent on the back of a booming stay-at-home economy.

The strong stay-at-home economy also boosted demand for computers and optoelectronic items with production rising 10.14 percent from a year earlier in May, the MOEA said.

Elsewhere, chemical material, base metal and machinery makers rode the wave of a cyclical recovery, enjoying 22.03 percent, 24.22 percent and 32.42 percent year-on-year production growth, respectively, in May, the MOEA said.

The auto and auto parts industry recorded a 49.81 percent year-on-year increase in production in May on the back of strong demand for passenger cars at home and for auto parts abroad, the MOEA said.

In the first five months of this year, the industrial production index rose 13.76 percent from a year earlier with the sub-index for the manufacturing sector up 14.63 percent, the ministry said.

As several tech companies in Miaoli County reported cluster infections in June, production in the manufacturing sector could be affected to some extent, Huang said.

Production in the manufacturing sector for June could fall up to 2.5 percent from a month earlier, but year-on-year growth should still hit 10.6-14.0 percent, marking the 17th straight month of growth. he added.