The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday expressed pessimism about the local manufacturing sector’s prospects next year, after the latest business climate gauge flashed “yellow-blue” — implying weakness — for the sixth consecutive month last month.
Despite continued weakness, the
headline composite index for the manufacturing sector rose to 10.99 points last month from a revised 10.7 points in August, the Taipei-based institute said in its monthly report.
TIER’s report came after government data showed that industrial production and export orders both improved slightly last month from a year earlier.
However, Gordon Sun (孫明德), director of the institute’s macroeconomic forecasting center, said the manufacturing sector would face challenges next year, citing tougher competition from other countries and still sluggish demand.
“Major segments in Taiwan’s manufacturing sector, except for electrics and electronics, might not perform well,” Sun said.
In particular, traditional industries such as rubber, plastic and metal would face intensifying competition from other Asian emerging economies, he added.
In addition, the US’ debt issue and its plan to scale back quantitative easing may add to global uncertainty next year, which could impact on Taiwan’s manufacturing sector, he added.