Man­u­fac­tur­ing sec­tor sees slightly im­proved out­look in May: TIER

The China Post - - TAIWAN BUSINESS -

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.

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