Taiwan’s composite index for the manufacturing sector flashed “green” last month, driven by the economic recoveries in developed Western countries, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.
The index gauges the health of the manufacturing sector in terms of demand, selling prices, costs, production input and operating environment.
The index rose to 13.19 points last month from a revised 11.21 points in November last year, marking its highest level since last January and snapping eight consecutive months of “yellow-blue” signals, the institute said in its monthly report.
The institute uses a five-color scale to reflect the condition of the manufacturing sector in which “blue” implies declining sentiment, “yellow-blue” represents sluggish conditions, “green” indicates a stable economy, “yellow-red” means sentiment is on the rise and “red” means that the economy is overheating.
The institute’s report came on the heels of a series of economic data releases suggesting that the nation’s industrial production and export orders both improved slightly last month from a year earlier.
“The economic recoveries in the US and Europe have bolstered sentiment in the local manufacturing sector,” the institute said.
The report also showed that the essential goods; petrochemical and rubber; metal and mechanical; electrical and electronics; and transportation sectors all flashed “green” last month, while oil and coal products still flashed “blue.”
Meanwhile, rising demand in the US and Europe resulting from their economic rebounds drove the nation’s apparel and clothing accessories sector to flash “yellow-red” last month, breaking with the sector’s traditional low season, the institute said.