TIER reveals nation’s manufacturing boosted by the plummeting cost of oil
The Taiwan I nstitute Economic Research (
) said Wednesday that manufacturing activity in Taiwan improved in March from a month earlier because of higher industrial production and export orders in the month.
TIER, one of Taiwan’s leading economic think tanks, said the manufacturing composite index for March stood at 11.54 points, up 1.28 from February’s 10.26, and it flashed a “yellow- blue” light, improved from February’s “blue” light.
The think tank uses a fivelight system to describe the state of the economy, with red indicating overheating, yellow- red representing fast growth, green showing stable growth, yellowblue hinting at sluggish growth
of and blue growth.
In March, the i ndustrial production index for Taiwan’s manufacturing sector grew 6.97 percent from a year earlier, and export orders for the month rose 4.8 percent year-on-year in Taiwan dollar terms, driving the gains in the local manufacturing climate, the TIER said.
Within the March composite index, the sub-index for raw material spending rose 0.78 points from a month earlier, the largest increase among the index’s six factors.
The sub indexes for the business environment and overall demand gained 0.46 and 0.18 points month-on-month, respectively, the think tank said.
The sub- index for production costs for March stayed un-
negative changed from February, while the sub- index for sales fell 0.14 points from a month earlier, the think tank added.
The big factor pushing the sales sub-index down was the lower sales value of petrochemical products, which fell because of plunging international crude oil prices even as sales volumes rose, according to the think tank.
Falling crude oil prices helped many manufacturers cut production costs, however, and demand was showing signs of recovering, helping boost the overall manufacturing sector in March, the think tank said.
TIER said that machinery, electronic components and the auto/car part sectors are expected to flash a green light for all of 2015 due to a fall in production costs, the think tank said.