Taiwan's Industrial Production Index Falls 16% Yearly in Jan.

Taipei, Feb. 29, 2012 (CENS)--Mainly affected by seasonal factors, Taiwan's industrial production index (IPI) dropped 16.46% year-on-year in January for the third consecutive month since October, 2011, according to the latest report issued by the Ministry of Economic Affairs.

MOEA's tallies also show that Taiwan's four mainstay manufacturing industries that make up the manufacturing production index (MPI), a central component of the IPI, all declined to cause the overall MPI to fall 16.92% in January, with the industry of metal products and machinery shrinking 19.67% yearly, information technology devices and electronics 15.86%, chemicals 16.08% and basic supplies 17.39%.

Noteworthily, the sector of computers, electronics and optoelectronics, which had maintained double-digit growths since the beginning of the second half of 2011 when Taiwan's most export-driven industries started to weaken due mainly to global economic doldrums, saw its MPI abruptly decline 20.86% in January, for the first negative growth seen in the past 27 months.

MOEA officials pointed out that the sector will see its output rebound in February, partly because market demand may revive along with the launch of the latest electronic devices unveiled at MWC 2012 (Mobile World Congress) and Cebit 2012.

In the meantime, the basic metal sector shrank 17% in January primarily due to shrinking output of steels.

The sector of chemical materials, however, improved its decline in MPI to 10.58% in January, thanks partly to skyrocketing international oil prices and partly to influx of the contract orders snapped up from Korean and Japanese counterparts who had been busy with periodical maintenance and repairing of equipments at factories during the span.

MOEA officials optimistically stressed that all the industries mentioned above are very likely to witness output increase in February, driving up Taiwan's overall MPI growth to 5-6% over a year ago.