Tue, May 01, 2012 - Page 12 News List

Manufacturing firm recovery likely to be delayed: TIER report

By Amy Su  /  Staff reporter

Although manufacturing confidence is starting to recover in the second quarter, a steady rebound may not occur until the second half of the year, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.

The Taipei-based think tank’s latest report released last month classified the manufacturing sector’s business climate as flashing “blue” — implying a decline — down from a revised “green” light, which represents steadiness, from a month earlier.

The reading for cyclical movement last month was 9.12 points, down 4.49 points from the previous month’s revised 13.61 points, given a higher comparison base last year, the report said.

“The momentum of the global economy has remained weak, further lowering the domestic manufacturing sector’s sales and dragging down the reading,” the report said.

Based on current economic conditions, the institute expected the sector’s confidence to return in the second half of the year, following a slight recovery in the second quarter.

A closer look at the manufacturing industry showed the business climate for most segments of the essential goods industry as flashing “blue” last month, the institute said.

The segment of metal basics in the metal products sector flashed “blue,” while that of machine equipment sector flashed “yellow-blue,” indicating weakness, after flashing “yellow-red” a month earlier, the report showed.

Most of the segments in the electrical and electronics sector flashed “yellow-blue” or “blue” last month, while rubber and plastic products in the petrochemical sector were rated -“yellow-blue,” data showed.

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