Fri, Oct 29, 2010 - Page 11 News List

More businesses turn pessimistic, TIER survey says

By Ted Yang  /  Staff Reporter

Local manufacturers are feeling increasingly uneasy about near-term economic prospects amid growing uncertainty over a US recovery that could hurt global demand, the latest Taiwan Institute of Economic Research (TIER, 台經院) survey showed.

Nearly 27 percent of companies polled last month felt pessimistic about the economic outlook for the next six months, up from 16.1 percent in August, the institute said in a statement.

Those who were neutral about the economic outlook reached 51.4 percent last month, down from 62.6 percent in the previous month, while those who felt optimistic rose slightly to 21.9 percent last month from 21.3 percent in August, it said.

“Downstream firms turned more conservative about market demand in the US and European markets on unclear signs of recovery in the regions,” TIER said.

The institute said inventory adjustment would continue in the new couple of quarters, traditionally a slow season for the manufacturing sector.

In a separate survey, TIER said wholesale and retail businesses in the service sectors saw a slight improvement in sentiment last month compared with August.

However, the tourism sector saw a 5.17 percent drop in tourist arrivals from the previous month as the Shanghai World Expo was drawing to a close.

Steady economic growth continued to support the financial sector last month, while transportation and logistics industries saw revenues drop because it was a slow season for cargo businesses, TIER said.

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