Taiwan's Industrial Production Growth Slows to 3.88% Y-on-Y in Aug.

Taipei, Sept. 28, 2011 (CENS)--Taiwan's industrial production index stood at 133.32 in August, up only 3.88% from a year earlier, signaling that the island's economic growth has slowed down, according to statistics compiled by the Ministry of Economic Affairs.

In the meantime, MOEA also reported the manufacturing production index of 136.16 for the same month, representing a sluggish growth of only 3.83% from a year ago. Noteworthily, the index has posted a single-digit increase for three consecutive months so far this year.

Although export orders received in July by local makers and traders hit a new high in value, Taiwan's industrial production has gradually slowed since the beginning of the second half of the year due mainly to the weakening global economy.

In the month, the chemical industry suffered the steepest drop of 8.55% in output among the four major manufacturing industries, namely chemical, metal and machinery, IT and electronics and essential goods, according to the MOEA report. The output decline was attributed partly to China's sagging market demand caused by credit tightening and partly to production suspension and factory maintenance in the petroleum sector.

Compared to other manufacturing industries which posted either flat growths or declines in output, the IT and electronic industry enjoyed a 7.34% year-on-year output growth in August, with production of computers, electronic devices and optical products shooting up 24.32% yearly, effectively sustaining the growth of Taiwan's overall industrial production growth.

Noteworthy is that, however, the electronic parts and components sector produced only 4.51% more than a year earlier, with its output growth slowing to a single-digit growth for the third consecutive month, noted MOEA officials. They pointed out that the growth slowdown is mainly caused by waning consumer demand amid the mounting debt crisis in the U.S. and Europe.

Witnessing Taiwan's overall industrial production weaken gradually, MOEA officials have adjusted their industrial production growth projection downward to only 3% for the third quarter, and warned that the growth will even hit zero in the fourth quarter.