Taipei, March 25, 2011 (CENS)--Taiwan's industrial production index stood at 110.66 in February, up 13.28% year-on-year and recording a double-digit growth for 16 months in a row, according to statistics compiled by the Ministry of Economic Affairs.
Despite the positive growth in overall industrial production index, the Feb. sub-index for the construction and engineering sector was down 63.27% from the preceding month and down 58.96% year-on-year, raising concerns about the upcoming imposition of luxury taxes.
The MOEA attributed the lingering positive growth in overall industrial production index partly to strong market demand in such emerging nations as India and the members of the Association of Southeast Asian Nations (ASEAN), and partly to the effects of the cross-Taiwan Strait ECFA (economic cooperation framework agreement) that took effect on Jan. 1, 2011.
As the industrial production index hit an all-time high in March 2010, it will be difficult to see the index continue to hit a historic high in March this year because of its relatively high comparison base.
The MOEA's tallies show the production index for the manufacturing sector hit 113.95, up 15.38% year-on-year. The index for the electronic components sector and the base metal sector jumped 23.28% and 22.81% year-on-year, respectively.
The annual growth in production index for the chemical materials sector was 4.13% in February. The MOEA attributed the growth in this sector to the price hike in petrochemical products, which has prompted relevant domestic firms to increase output.
C.S. Huang, director general of the MOEA's Department of Statistics, noted production outlook for such sectors as information and communications, electronic components, machinery, chemical materials, base metal and automobile components will be very promising in March, which will help push up the overall industrial production index for the month.