TAIPEI -- Taiwan's manufacturing output in the third quarter reported the smallest decline since the first quarter last year as global demand for semiconductor products picks up.

During the July-September period, the manufacturing sector's output value fell 1.61 percent year on year, the island's statistics authorities said Friday.

The decrease was narrow compared to the 8.05 percent and 13.79 percent recorded in the second and first quarter.

The authorities attributed the smaller decline to warming global demand for the island's semiconductor products, as the launch of the new iPhone has buoyed orders for Taiwan-made components.

The manufacturing output value is expected to be stable as global crude oil prices end their sharp decline, it said.

It also forecast that manufacturing value would improve in the fourth quarter as the Christmas shopping season will boost demand for electronic components.

In September, Taiwan's export orders grew 3.9 percent from a year earlier, representing the second consecutive month of year-on-year growth amid the launch of new iPhones.

The Industrial Technology Research Institute, a think tank, estimated that with global economic growth momentum picking up in 2017, the production value of Taiwan's manufacturing sector will grow about 1 percent.