The manufacturing sector is expected to post a strong rebound in the second half of the year from the first half, led by the electronic components industry, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.
The Taipei-based think tank’s latest report showed the manufacturing sector’s business climate might flash a “green” light in the second half, compared with a “yellow-blue” light in the first half.
The green light implies a steady momentum, while a yellow-blue light shows weak sentiment, the institute said.
“[Improved] sentiment among electrical and electronic manufacturers might lead the sector’s rebound from the late second quarter,” Gordon Sun (孫明德), director of the institute’s macroeconomic forecasting center, told a press conference.
Chemical and rubber manufacturers, as well as metal machinery manufacturers, are expected to follow the electronic components segment’s rebounding pace in the third and fourth quarter respectively, Sun added.
Taipei-based Citigroup chief economist Cheng Cheng-mount (鄭貞茂) shared Sun’s view and maintained an optimistic outlook on the manufacturing sector in the second half.
“The launch of new smartphone and tablet products might help drive up sentiment in the local electronic components segment in the second half,” Cheng said.
Cheng added that this could further raise the confidence of electrical and electronics manufacturers.