TIER re­veals na­tion’s man­u­fac­tur­ing boosted by the plum­met­ing cost of oil

The China Post - - LOCAL -

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-

in­di­cat­ing

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.

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