Heavy users consume more electricity

• By Crystal Hsu / Journalist

Electricity consumption among large consumers increased last month by 0.87% from a year earlier, as the launch of new tech gadgets and the continuing boom in artificial intelligence (AI) supported local companies, the Taiwan Research Institute (TRI, 台灣綜合研究院) said yesterday.

The Electricity Prosperity Index, which the institute uses to gauge the health of the industrial and services sectors, showed a “yellow-red” hue, suggesting that the country’s economy has regained strength despite a persistent unbalanced growth.

The institute attributed the momentum to the launches of iPhone 16, Apple Watches and other consumer electronics.

Photo: ANC

These launches help explain why overall high-voltage electricity consumption increased by 1.52 percent last month compared to the same period last year, while it increased by 6.7 percent for local semiconductor companies, he said.

Electricity consumption of manufacturers and service providers increased by 1.17 and 2.84 percent year-on-year, respectively, it added.

Taiwanese retailers, wholesalers and hospitality providers have held up thanks to a stable labor market and healthy household incomes, even as revenge consumption following the COVID-19 pandemic has declined, the institute said .

At the same time, manufacturers of non-tech products continue to face the challenge of sluggish global demand and overproduction from foreign competitors, the report said.

TRI said it was optimistic that the economy would prosper during this quarter, the traditional peak season for technology products, retailers and hotel operators.

The institute predicted that annual GDP growth would have reached 3.1 percent last month and 3.3 percent in the third quarter, a slowdown from 5.83 percent growth in the first half due to a high basis of comparison.

The Directorate General of Budget, Accounting and Statistics is due to unveil third quarter GDP data later this month.