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Industrial output jumps 7.74 percent in August

The manufacturing sector, which contributes over 90 percent of industrial output, rose 8.35 percent on the back of surging demand for consumer electronics.

New technologies like virtual reality also fueled the growth, with companies offering integrated circuits, LCD panels and electronics parts and components all benefiting.

Chemical material and basic metal producers also ramped up production as they took advantage of falling commodity prices. Output for the two sectors rose 6.94 percent and 4.52 percent, respectively.

Although machinery company output experienced a 2.76-percent decline, this ended the double-digit retreat seen in the industry over the past 11 months. Increased demand for manufacturing automation as well as smart and customized machinery helped reverse the trend, the ministry said.

Auto parts and car output grew, largely due to increased demand in China and the U.S. Consumption in Taiwan also increased, mostly on the back of a subsidy program encouraging locals to trade in old cars.

The ministry expressed optimism about industry performance in the near future, saying that sales usually grow more robust toward the end of the year.

Other positives include plans by global brands to launch new mobile devices as well as the growing adoption of emerging technologies such as car electronics and the internet of things (IOT). The ministry predicted another month of industrial growth in September.

Business Revenues in August

In a separate report released Tuesday, the Economics Ministry said wholesale sales grew 3.4 percent to NT$832.8 billion in August, ending an 18-month streak of year-on-year declines.