Manufacturing sector sees slightly improved outlook in May: TIER
Local enterprises’ outlook toward the domestic manufacturing sector improved slightly in May, according to a monthly report released Thursday by the Taiwan Institute of Economic Research (TIER).
The TIER, one of Taiwan’s leading think tanks, said that although electronics exports remained overshadowed by weakening global demand, outbound sales in machinery, textiles, optoelectronics and auto parts stabilized in the month, which helped the slightly increased optimism.
Based on the institute’s monthly survey of business sentiment in Taiwan, its manufacturing composite index rose 0.13 points from a month earlier to 96.42 in May, breaking a three-month losing streak.
Optimism toward the local service sector also improved slightly, with the service composite index up 0.22 points month-on-month to 97.02 in May, as retail and wholesale operators appeared upbeat in the month, the think tank said.
TIER President Lin Chienfu said that while the global economy remains on the road to recovery, the strengthening has been less than the market had previously expected.
But the U.S. economy — the largest in the world — has been shedding the weakness of the first quarter, when the bitter weather and strikes by port workers affected consumption and retail sales, Lin said.
He added that other economies, such as China and the eurozone, improved as they eased their monetary policies.
As a result, Lin said, while the pace of the global economic recovery remained slow, it appeared stable.
Despite a slight recovery in manufacturing sentiment, the mood toward the local construction sector worsened, with the composite index of the construction sector down 3.4 points from April at 77.74 in May, the TIER report shows.
Lin said that the weaker outlook toward the property market largely reflected a decline in transactions of homes, shops and offices in the local market, while the number of public works has been on the decline, which also dampened optimism.