Taiwanese manufacturers are less optimistic about the economy in the coming six months, as the European debt crisis has dampened buying from Europe and China’s measures to tighten its monetary policy and real estate market are expected to decrease demand, a survey released by a local think tank said yesterday.
The Taiwan Institute of Economic Research’s (TIER, 台經院 ) survey from last month said that the percentage of manufacturers who expected business growth for the next six months declined to 30.2 percent last month from 38.8 percent in May.
UNCHANGED
Meanwhile, those who said business would remain the same rose to 52.4 percent, up from 46.3 percent in May, the survey said.
However, the number of firms who perceived the economic outlook to be worsening has increased, from 14.8 percent in May to 17.4 percent last month.
Although the manufacturing industry has entered its peak season — the second half of the year — which will boost the industry’s demand, the European debt crisis is not completely over yet, TIER said.
Concerns over southern European countries’ debt problems might hurt consumption in Western countries, and that has led manufacturers to become more conservative with their estimates of market demand, TIER noted.
CHINA’S POLICIES
The TIER report also said that the policy-tightening measures in China are expected to affect demand, and that has made manufacturers less bullish about their business in the next six-month period.
According to the results of last month’s survey, it was the first time both the manufacturing and the service sector indices had shown a decrease since January.
The Manufacturing Composite Indicator saw a downward correction, from 118.94 points in May to 116.14 points last month
The TIER Service Sector Sentiment Index contracted from 128.93 points in May to 126.78 points last month.
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