The manufacturing sector’s business climate flashed a “yellow-blue” light for the seventh straight month, implying persistent weakness in the sector amid slowing demand from the US and Europe, the Taiwan Institute of Economic Research (台灣經濟研究院) said yesterday.
The sector’s cyclical movement totaled 10.01 points in October, down 0.61 points from the previous month’s revised 10.62 points, the Taipei-based think tank said in its monthly report.
“Declining demand from the US and Europe led by uncertainties on the global economy and financial markets made the manufacturing sector’s outlook weaker,” the report said.
In the petrochemical sector, the business climate for the chemical raw material segment turned “blue,” signifying decline, for October, while the non-metal mineral product segment turned “yellow-blue,” with the two segments flashing “yellow-blue” and “green” respectively in September, the institute said.
Sentiments in the motor vehicles and parts sector also turned “yellow-blue” in October from “green,” implying steady momentum, the month before, indicating demand for cars has slowed in step with the economic slowdown, it said.
The metal machinery sector and electrical and electronics sector remained flat at “blue” and “yellow--blue” respectively for October, the report’s data showed.
In the essential goods sector, the food segment flashed “green” in October, from “yellow-blue” a month earlier, with the leather, furs and related products segment turning “yellow-blue” from “blue,” data showed.