Taiwan's production output fell 5.46 per cent in August on the back of underperforming exports, the Economics Ministry reported yesterday.
The production index -- 104.47 posted in August -- has been trending downward since it reached its peak of 111.73 in March.
Output of all manufacturing categories tumbled across the board, while that of base metal, machinery and equipment, cars as well as computer, electronics and optical products, slumped more than 9 per cent.
Output of electronics parts and components, the largest manufacturing category in Taiwan, dipped 3.28 per cent. The subcategory of panel industry dropped 10.82 per cent.
Slow demand in electronics products and global competition contributed to less output in the electronics parts and components industry, the Economics Ministry said.
Similar reasons also caused the output of computer, electronics and optical products as well as machinery and equipment to slump.
Production of sedans and larger-sized vehicles plummeted more than 20 per cent as demand slowed during the lunar ghost month while some facilities suspended operation.
Aggregated sales fell nearly 3 per cent
With the decline recorded in August, the production output has been decreasing for four months running, joining a series of disappointing figures the nation has seen in the past few months, including reduced foreign orders for five continuous months and sliding exports for seven straight months.
In a separate report released by the Economics Ministry yesterday, aggregated business revenues dipped 2.9 per cent in August, marking yet another decline for six consecutive months.
More specifically, wholesale fell 4 per cent, retail slipped 0.7 per cent while the food industry rose 2.3 per cent.
The food industry saw growth as a result of name brands expanding stores and increased sales from food delivery services, the ministry said.
Future forecast
According to the Economics Ministry’s survey, 10.4 per cent of manufacturing firms projected higher output in September than in August, while 68.5 per cent expected it would remain roughly the same and 21.1 per cent believed the output would sink further.
The directional movement index for production output registered at 48.4; Since a value under 50 indicates contraction, the Economics Ministry forecast September’s output will be lower than August’s.
Looking forward, the Economics Ministry said weakened global growth momentum, emerging markets’ waning demand, slumping oil and steel prices and intense competition with global players are all risk factors.
On the positive side, big global names unveiling new mobile devices, China’s upcoming National Day Golden Week, the winter shopping season and petrochemical companies wrapping up annual maintenance repair may pull up domestic companies’ production.