The Ministry of Economic Affairs said that Taiwan's industrial production index dropped slightly in May 2012 from April 2012 amid a gloomy global economy, the third consecutive month that the index has posted negative annual growth.

According to statistics released by the ministry, the index fell 0.21% YoY to 135.69. However, the May 2012 index was 3.99% higher than in April 2012.

Mr Huang Ji shih director general of the ministry's statistics department said that Taiwan's industrial production was not worsening, and pointed out that May's negative annual growth was much smaller than April's figure.

Mr Huang attributed the decline to a high base period in 2011 and the gloomy global economy caused by the European debt crisis. Despite the negative growth, the May 2012 index was the fourth highest in history.

As many local companies in the information communication technology field are expected to launch new products in the following months, Mr Huang expressed optimism toward the monthly level in June 2012, predicting a positive annual growth rate of 1.19%.

Although the April to June 2012 industrial production index is not likely to record a positive annual growth rate, the situation is going to improve steadily quarter by quarter.

The statistics showed that the manufacturing sub index, a central component of the industrial production index, was the only one that posted negative annual growth, down 0.37% from a year earlier.

The sub indices for four other industries like construction, mining, water supply and power supply expanded by 7.28%, 5.1%, 1.23% and 0.63%, respectively. The machinery industry, a sub index of the manufacturing sector, fell by 13.92% YoY in May 2012, the largest decline among the industries in that sub index.

Source- China Post

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