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Taiwan's industrial output up 1.06% in September

Taiwan's industrial output up 1.06% in September

Taipei, Oct. 23 (CNA) Taiwan's industrial production index stood at 100.7 in September, up 1.06 percent from the same month last year, on the back of rising output in the manufacturing sector, according to a report released Wednesday by the Ministry of Economic Affairs. Increased production in the manufacturing sector, which accounts for 90 percent of the country's overall industrial production, was the main driver of the increase. The local manufacturing production index registered at 99.68 in September, which was equivalent to a 0.73-percent rise year-on-year, driven mainly by the strength of the semiconductor sector as well as increasing demand for solar energy materials, high quality steel products and chemical fiber materials, according to Yang Kuei-hsien, deputy director-general of the ministry's statistics department. Several sub-sectors within the industry, however, showed a drop in production for the eighth consecutive month, according to the data. The automobile and spare parts sector registered the biggest drop of 10.1 percent, while the machinery equipment industry declined 9.01 percent, and the computer, electronics and optical product industries fell 3.61 percent, Yang noted. He forecast that factors such as the United States efforts to end its budget standoff and signs of recovery in the European economy are likely to offset the declining demand caused by the economic downturn in emerging countries. Yang predicted that Taiwan's manufacturing sector will grow in the fourth quarter of this year on strong demand in the solar energy and LED industries, though the growth is unlikely to be significant. The Industrial Production Index is an economic indicator that measures changes in output in the manufacturing, mining, and utility industries. Although these sectors contribute only a small portion of GDP, they are highly sensitive to interest rates and consumer demand. This makes industrial production an important tool for forecasting future GDP and economic performance. Industrial production figures are also used by central banks to measure inflation, as high levels of industrial production can lead to uncontrolled levels of consumption and rapid inflation, according to the ministry. (By Huang Chiao-wen and Y.L. Kao)


Updated : 2021-06-23 06:25 GMT+08:00