Sat, Jul 30, 2011 - Page 12 News List

Manufacturing climate still weak: TIER

By Amy Su  /  Staff Reporter

Last month, the manufacturing business climate flashed a “yellow-blue” light, implying weakness, for the third straight month, as demand slackened during the seasonal slowdown, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.

Although the manufacturing sector’s cyclical movement totaled 12.75 points last month, up 1.63 points from the previous month’s revised 11.12 points, the reading for the overall business climate remained below the threshold for a green light — signifying steady growth — at 13 points, the Taipei-based think tank said in its monthly report.

“The three consecutive months of ‘yellow-blue’ light [readings] reflect a downturn in sentiment in the second quarter given weak demand and continuing high bulk commodity prices,” the institute said.

A closer look at the manufacturing industry shows the electrical and electronics sector flashing “yellow-blue” for seven consecutive months, while the metal products sector turned “green” last month from the previous “yellow-blue,” data showed.

As for the essential goods sector, only four segments — apparel and clothing accessories, food, drinks and textiles — remained stable, while the others showed a downturn, the institute said.

Transportation and rubber or plastic products flashed “green” last month, the institute said, adding that most of the petrochemical sub-sectors were stable.

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