Industrial production this year is likely to show record growth, after last month increasing 12.19 percent year-on-year, a 22nd consecutive month of growth, as manufacturers benefited from eased component supply constraints, the Ministry of Economic Affairs said yesterday.
Manufacturing output was supported by demand for chips used in 5G devices, high-performance computing applications and vehicles, the ministry said.
Manufacturing output, a major contributor to industrial production, last month rose 13.13 percent from a year earlier, beating the ministry’s annual growth estimate of 9.7 to 11.9 percent.
Photo: CNA
“The manufacturing sector ended up better in November than we thought,” Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) told the Taipei Times by telephone. “The production of computers, servers and consumer electronics picked up, as the uneven supply of key components and materials has eased a bit. This is likely the main reason.”
That was reflected in a rise of 13.21 percent year-on-year in computer and optoelectronics output last month, ministry data showed.
The output of electronics components rose 20.06 percent annually, driven by robust demand for chips, and chip testing and packaging services, as well as LCD panels used in industrial and medical devices, Huang said.
The output of vehicles and automotive components last month posted an annual decline of 1.38 percent, as production halted on lingering chip shortages, the ministry said.
The output of petrochemicals rose 3.19 percent year-on-year, while base metals rose 8.49 percent and machinery 19.16 percent, it said.
The ministry said it expects the growth momentum to carry into this month, as the world economy is coping better with the Omicron variant of SARS-CoV-2 than with the emergence of COVID-19 two years ago, and no large-scale shutdowns are expected.
Manufacturing production is forecast to increase between 7.3 percent and 9.4 percent from last year, Huang said.
“For the whole of this year, industrial production is forecast to surge 13.8 to 14 percent over last year — to a new record,” Huang said.
That would be the strongest growth since a V-shape rebound in 2010 following the 2008-2009 global financial crisis, he added.
Separately, the ministry said that retail sales last month rose 6.3 percent annually to a record NT$375.4 billion (US$13.51 billion), thanks to sales promotions launched by online shopping sites.
Online shopping sales increased 20.7 percent annually to NT$33.7 billion, it added.
The sale of retail fuel last month rose 30.5 percent year-on-year — its fastest pace — to NT$22.9 billion due to gasoline price increases, the ministry said.
Sales of vehicles and scooters last month slumped 12.9 percent annually to NT$55.8 billion, due to fewer vehicle imports, as overseas auto plants suspended production mainly due to chip shortages.
In the first 11 months of the year, retail sales rose 3.2 percent annually to NT$3.62 trillion.
The ministry said that retail sales are likely to continue their growth trend this month amid demand for emerging technologies.
Wholesale revenue last month increased 13.8 percent to NT$1.79 trillion from a year earlier, with machinery revenue increasing 18.9 percent to NT$478.2 billion due to a buildup of inventories, especially chips and communications products, ahead of the year-end shopping season.
Construction material revenue surged 29.3 percent year-on-year to NT$127 billion due to local manufacturers expanding factories and adding infrastructure overseas.
In the first 11 months, wholesale revenue rose 16.1 percent annually to a record NT$1.14 trillion.
The ministry expects the growth trend to extend into this month.
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