Sat, Oct 29, 2011 - Page 11 News List

The manufacturing sector’s light stays ‘yellow-blue’: TIER

By Amy Su  /  Staff Reporter

The global economic slowdown caused the manufacturing sector’s business climate to show a “yellow-blue” light for the sixth straight month last month, implying persistent weakness in the sector, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.

A gauge showed the overall business climate was close to the threshold for a “blue” light, which indicates declining sentiment, the Taipei-based think tank said.

“The debt crisis in Europe, continuing weak employment in the US and the slowing economy in China all pull down the manufacturing sector’s outlook,” TIER said in its monthly report.

A closer look at the manufacturing industry shows that the business climate for the metal products sector flashed “blue” for the third straight month, while that of machine equipment sector flashed “yellow-blue,” the institute said.

The electrical and electronics sector flashed “yellow-blue” or “blue” last month, while many companies in the essential goods and the petrochemical sectors was rated “yellow-blue,” the report showed.

As the growth in the US economy was higher than expected in the third quarter and the eurozone’s debt crisis is gradually solved, the sentiment in the electronics sector may start improving from the second quarter next year, although overall sentiment among manufacturers will remain gloomy for a while, Gordon Sun (孫明德), deputy director of TIER’s macroeconomic forecasting center, said yesterday by telephone.

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