Taiwan's industrial production increased in August, beating forecasts, as strong global demand for technology drove the rise, according to data released by the Ministry of Economic Affairs on Wednesday.

The island's industrial production grew 23.47% year over year in August, beating a 21.5% forecast compiled by Trading Economics, but slower compared with a 25.61% rise in July.

Manufacturing output rose 24.61%, driven by a 95.71% surge in computers, electronics, and optical parts, which all expanded due to artificial intelligence, high-performance computing, and cloud services.

Electronic parts and components, including integrated circuits, also saw higher production in August.

Output in the power and gas supply sectors rose, but the mining and quarrying sector, as well as the water supply sectors, fell during the month.

Retail sales on the island rose 6.5% year over year, easing from the 7.7% expansion in July, driven by demand from Ghost Month and Mid-Autumn Festival preparations, the MOEA said.

The reading eased from the 7.7% year-over-year expansion reported in the previous month and the 7.1% growth forecast compiled by Trading Economics.

Food, beverage, and tobacco retail sales jumped 13.1% year over year. New smartphone models also drove information and communications technology sales upward.

Automobile and motorcycle sales increased due to higher sales of imported vehicles, while fuel sales jumped due to higher domestic prices.