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 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.