Wed, Aug 31, 2011 - Page 12 News List

Manufacturing flashes ‘yellow-blue’

By Amy Su  /  Staff Reporter

The manufacturing-business climate flashed a “yellow-blue” light, implying weakness, for the fourth straight month last month amid rising energy costs and slackening seasonal demand, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.

Last month, the manufacturing sector’s cyclical movement totaled 10.68 points, up 0.04 points from the previous month’s revised 10.64 points, indicating that 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 four consecutive months of ‘yellow-blue’ light [readings] reflect a downturn in sentiment given the traditional weaker seasonal demand, and the rising uncertainties about the US and eurozone’s economies,” the institute said.

A closer look at the manufacturing industry shows the electrical and electronics sector flashing “blue,” or declining, while the metal products segment in the metal and machinery sector turned “blue” last month from the previous “yellow-blue,” the report showed.

In the essential goods sector, the food segment flashed “yellow-blue” last month from the stable “green” in the previous four straight months, the institute said.

The petrochemical sector, segments of petroleum and coal products, and chemical raw materials and products flashed “yellow-blue” for more than three months.

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