Jan 21, 2017 Market Comments Off on December industrial production may rise for 5th consecutive month
Taipei--Taiwan is likely to report a year-on-year increase in December's industrial production for the fifth consecutive month, the Ministry of Economic Affairs (MOEA) said Saturday.
The optimism was bolstered by moves by clients of local manufacturers to build up their inventories in a bid to meet rising demand before and during the upcoming Lunar New Year holiday, a traditional shopping season in ethnic Chinese societies, the MOEA said.
It said that industrial production for December could rise about 6 percent from a year earlier after an 8.83 percent year-on-year increase seen in November. The ministry is scheduled to release the December industrial production on Monday.
In November, the industrial production index also rose 1.79 percent from a month earlier to 111.27, with the sub-index for the manufacturing sector -- which accounts for more than 90 percent of local industrial production -- up 10.36 percent from a year earlier on the back of solid demand for electronic devices in the global market.
Industrial production in the electronic components industry for November, meanwhile, rose 18 percent from a year earlier, marking the fourth consecutive month in which these manufacturers reported double-digit growth in production.
The MOEA said that demand for high-tech gadgets continued in December as international brands launched new models to stimulate buying with the Lunar New Year holiday approaching.
The MOEA added that a wider range of applications in the Internet of Things and automotive electronics also boosted shipments of high-tech devices, so that local electronic component makers are expected to continue to report growth in production for December and lend support to the overall industrial production in the month.
In addition, with the global economy expanding, raw material prices have shown signs of rising, the MOEA said, adding that inventory built-up in the run-up to the New Year holiday is expected to allow local suppliers of chemical materials, base metal, machinery and autos to come up with positive production figures for December.
The MOEA said that an expected year-on-year rise in industrial production is expected to allow the figure for the whole of 2016 to point to an increase. In the first 11 months of this year, Taiwan's industrial production rose 0.95 percent from a year earlier.
Source: Focus Taiwan News Channel
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