In­dus­trial pro­duc­tion declines by 3.18 per­cent: MOEA


The in­dus­trial pro­duc­tion in­dex in May fell 3.18 per­cent yearon-year to 106.71, snap­ping 15 con­sec­u­tive months of pos­i­tive growth, the Min­istry of Eco­nomic Af­fairs ( MOEA, ) said yesterday.

In­dus­trial out­put fell in May for the first time in 15 months. Man­u­fac­tur­ing, which makes up the largest por­tion of in­dus­trial out­put, con­tracted 2.57 per­cent yearon-year to 107.49.

Elec­tric­ity and gas sup­ply was a sec­ond in­dus­trial sec­tor that re­ported an an­nual de­cline in May — of 19.32 per­cent — and wa­ter sup­ply de­creased by 4.21 per­cent.

Sec­tors that saw mild growth in out­put were min­ing and quar­ry­ing, which rose by 4.71 per­cent, and build­ings con­struc­tion pro­duc­tion that in­creased by 2.45 per­cent.

Man­u­fac­tur­ing Sub-in­dices

Man­u­fac­tur­ing fell 2.57 per­cent year-on-year to 107.49, with out­put in elec­tronic parts and com­po­nents fall­ing 1.79 per­cent to end a 36-month growth streak.

The MOEA said that the re­duced or­ders, par­tic­u­larly for pan­els, LED light­ing and so­lar cells, have pri­mar­ily been due to cus­tomer in­ven­tory ad­just­ments.

Due to slow­ing de­mand

in emerg­ing mar­kets, out­put in com­put­ers, elec­tron­ics and op­ti­cal prod­ucts grew to a 20.85 per­cent con­trac­tion.

Out­put in fab­ri­cated me­tal prod­ucts and in mo­tor ve­hi­cles and parts also saw a de­cline — of 4.8 and 7.52 per­cent — last month.

Slow­down in Trade and Food

Also yesterday, the Eco­nom­ics Min­istry’s Depart­ment of Sta­tis­tics ( ) re­ported that sales of trade and food ser­vices posted an an­nual de­crease of 4.3 per­cent in May, mark­ing the third con­sec­u­tive month of de­cline.

The sub-in­dex of food and bev­er­age ser­vices rose by 4.1 per­cent in May on rev­enue from Mother’s Day and shops selling drinks and iced desserts, ac­cord­ing to the MOEA.

But over­all trade and food ser­vices rev­enue was down, led by a con­trac­tion in whole­sale trade of 6.5 per­cent.

Fi­nance Min­istry on Ex­ports

These latest fig­ures join dis­ap­point­ing ex­port data that the MOEA re­leased ear­lier this week

On Tues­day, the min­istry re­ported that ex­port or­ders fell 5.9 per­cent to US$35.79 bil­lion in May, mark­ing the sec­ond con­sec­u­tive month of de­cline and the weak­est show­ing in nearly two years.

Pre­ci­sion in­stru­ments, ma­chin­ery, plas­tics and chem­i­cal prod­ucts and elec­tron­ics all posted neg­a­tive growth, mostly in the dou­ble dig­its, while in­for­ma­tion and com­mu­ni­ca­tion tech­nol­ogy prod­ucts saw a mild in­crease of 2.3 per­cent. The Min­istry of Fi­nance ( MOF,

) said yesterday that it does not fore­see a pickup in or­ders in June.

The May ex­port data is a cause for con­cern and there is a need to un­der­stand the cause and the sit­u­a­tion of neigh­bor­ing coun­tries, Fi­nance Min­is­ter Chang Sheng­ford ( ) told lo­cal media yesterday.

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