The business sentiment in the domestic manufacturing sector turned more pessimistic last month amid weak global demand for end products and companies’ low capacity utilization, the Taiwan Institute of Economic Research (台灣經濟研究院) said yesterday.
The latest survey conducted by the Taipei-based think tank showed that respondents who had a bullish business sentiment last month declined to 19.8 percent, from 22.8 percent recorded in September, while those feeling bearish amounted to 46.1 percent, up 16 percentage points from a month ago.
That meant that the business climate gauge for the manufacturing sector last month amounted to 91.06 points, down 3.06 points from a revised 94.12 points in September, marking the lowest level since February 2009, the survey showed.
“The survey showed that local manufacturers’ de-inventory process may be deferred to the first quarter of next year,” deputy director of the institute’s macroeconomic forecasting center, Gordon Sun (孫明德), told a press conference.
As for the outlook over the next six months, more than half of the manufacturers polled viewed the business sentiment as flat, while those who had a bullish or bearish outlook fell by 0.5 and 4.5 percentage points respectively to 17.7 percent and 30.5 percent — evidence that the sector may bottom out in the first quarter of next year, Sun said.
A separate survey conducted by the institute showed that the business climate gauge for the service sector for last month also dropped to the lowest level since April 2009.
It came to a total of 91.62 points, down 2.16 points from a revised 93.78 points recorded in September.
Respondents who maintained a bullish outlook for the near future stood at 24.3 percent, while those feeling bearish amounted to 24.6 percent, with wholesale business having a more pessimistic sentiment for the next six months, it said.
“This showed that the momentum on domestic demand may slow next year amid consumers’ lower confidence in the job market and gains,” Sun said.
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