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Taiwan's manufacturing sector output falls to a 6-year low

Taiwan's manufacturing sector output falls to a 6-year low

Taipei, Nov. 21 (CNA) The production value of Taiwan's manufacturing sector for the third quarter of this year fell to a six-year low at a time when the world's economy showed signs of slowing with global demand weakening, according to the Ministry of Economic Affairs (MOEA).

The continued weakness of international crude oil prices was also cited as a reason for the local manufacturing sector's decline in output since local suppliers' pricing power has been eroded, the MOEA said.

The MOEA said that the production value of the local manufacturing sector for the July-September period fell 15.01 percent from a year earlier to NT$3.16 trillion (US$96.63 billion).

It was the third consecutive quarter for Taiwan's manufacturing sector to register a year-on-year decline in production output after a 3.87 percent fall in the first quarter and a 9.21 percent decline in the second quarter.

The MOEA said that a slower global economy dragged down demand for consumer electronics devices so that the local electronics component segment witnessed its output fell 8.45 percent year-on-year to NT$898.5 billion in the third quarter.

Output of integrated circuit suppliers and flat panel makers dropped 1.71 percent and 20.27 percent, respectively, to NT$287.5 billion and NT$230.4 billion in the July-September period. The MOEA said that the two segments fell victim to inventory adjustments.

In the third quarter, international crude oil prices fell about 50 percent from a year earlier, the MOEA said, so output of Taiwan's chemical material segment plunged 23.94 percent from a year earlier to NT$399.2 billion.

Output of the local auto/auto parts segment for the third quarter fell 4.21 percent from a year earlier to NT$97.7 billion as imported cars raised competition in the local car market, the MOEA said. The ministry added that many potential car buyers here put their purchase plans on hold, waiting for a government subsidy program.

The MOEA said that the production value of the local base metal segment fell 27.55 percent from a year earlier to NT$284.3 billion since the world's steel market remained weak, and copper prices remained at lows. In the first nine months of this year, output of Taiwan's manufacturing sector fell 9.53 percent from a year earlier to NT$9.77 trillion, the MOEA's data showed. (By Huang Chiao-wen and Frances Huang)


Updated : 2021-09-18 18:29 GMT+08:00