Taipei, Oct. 25 (CNA) Manufacturing sentiment in Taiwan improved for the third consecutive month in September amid increasing global demand for electronic devices, such as smartphones, the Taiwan Institute of Economic Research (TIER) said Wednesday.
TIER, one of the country’s leading economic think tanks, said its composite index gauging business sentiment in Taiwan’s export-oriented manufacturing sector rose 1.35 points from a month earlier to 93.98 in September.
According to TIER, exports increased slightly in September on a year-over-year basis for the first time in 12 months, thanks to robust demand for new electronic devices, resilience in sales of traditional products and a low base of comparison.
While September’s manufacturing production index declined 7.01 percent compared with the same month in 2022, the downturn showed signs of improvement, TIER said.
However, TIER said surveys indicated that businesses in the manufacturing sector held a conservative outlook for the next six months, in part due to a slow recovery for end-user demand and the effects of global economic, political and geopolitical uncertainties.
In the service sector, the composite index gauging business sentiment fell 4.45 points in September to 92.48, TIER said, due to little changed restaurant sales and revenue posted by the tourism industry following the end of the summer vacation and an anemic month for the local bourse.
Despite this, September’s business outlook survey showed that those in the hospitality and securities sectors appeared upbeat about the next six months, TIER said.
Meanwhile, Taiwan’s construction industry composite index fell 0.39 points from August to 101.21 in September, ending a three-month rising streak, TIER said.
TIER noted that businesses in the sector had turned cautious about the next six months due to the uncertain political and economic situation ahead of the presidential election in January 2024 and policies such as tax hikes to deter home hoarding.
TIER said buying in the home market rebounded steadily amid a wave of new house handovers to home buyers in many places and the launch of the government’s preferential loan program for young people that spurred many to quicken their purchasing pace.
Globally, TIER said the performance of the manufacturing industries in major countries had improved slightly, noting that the Purchasing Managers Indexes (PMI) for both China and the U.S. had inched upward in September.
TIER said attention should be paid to the economic effects of the Israeli-Hamas war, which could cause violent fluctuations in global oil prices if it widens into a regional conflict.
