Industrial production in Taiwan rose 2.15pc in November from the prior year, ending two consecutive months of annual drops, according to the Ministry of Economic Affairs.

 

The manufacturing sector output rose 2.05pc from the same month prior year. Manufacturing contributes more than 90pc to industrial production. In the first half of this year, the performance of the manufacturing sector was weak and recorded a decline by 0.4pc or an increase of 1pc in total output in 2019.

 

An economic slowdown impacted the production of machinery equipment industry which was down by 21pc in November as most companies reduced investments. This also reflected in significant drop in machinery exports from Taiwan.

 

The weakened global steel prices in the second half of 2019 impacted the production of base metal industry which dropped by 11.31pc from the prior year. Technological advances in the production lines of integrated circuits helped electronic components industry post an output growth of 9.18pc in November.

 

Taiwanese companies started moving back production to their own country expecting growth in the coming days. Many manufacturers have relocated from foreign countries to benefit from increased domestic consumption. Demand is expected to rise as global markets stabilize after the phase one trade agreement between the US and China starting in January 2020.

 

During the Jan-Nov period, overall industrial production declined 0.87pc from the prior year, driven by a 0.97pc decrease in manufacturing sector output.

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