Taiwanese companies in several sectors last month turned less optimistic about their business prospects, as major trade partners fared worse than expected in economic showing, a survey by the Taiwan Institute of Economic Research (TIER, 台經院) showed yesterday.
The business climate gauge for the manufacturing industry slipped to 94.27 last month from 95.75 in October, down for four months running as falling crude oil prices dent earnings for firms in the plastic industry.
“Firms involved in oil-linked businesses hesitate to replace orders these days for fear that crude costs might drop lower and make purchases now seem rather expensive later,” Gordon Sun (孫明德), director of TIER’s economic forecasting center, told reporters.
Consequently, only 11.7 percent of manufacturers were upbeat about their businesses last month, down 7.4 percentage points from October, while firms with negative views gained 5.5 percentage points to 36.2 percent, the survey indicated.
Manufacturers expressed more confidence when talking about the business outlook for the next six months.
About 27.5 percent of firms express optimism about the business landscape in the coming six months, an increase of 10.5 percentage points from October, the survey said, adding that firms with downbeat views declined from 23.8 percent to 14.7 percent.
The sharp decline in crude oil prices translates into lower productions costs for most local manufacturers, giving them incentives to raise wages for employees, Sun said.
However, firms engaged in providing energy from alternative sources might see their competitive edge weakening, the economist said.
The business indicator for the service industry dipped for the fourth consecutive month to 93.89 last month, compared with a revised reading of 94.89 in October, dragged down by sluggish outlook among retailers, the survey showed.
Firms in the transportation and logistics sectors are more positive about business prospects, thanks to lower fuel costs, the survey said.
The Taipei-based think tank expects oil prices to remain low next year, boding well for firms that rely heavily on oil products, Sun said.
The business climate reading for the construction industry pared 4.64 points to 87.68 last month, down for three months in a row, as builders and developers had difficulty finding buyers, the survey said.
The government’s plans to introduce separate income taxes on property gains cast a shadow on the market, even though uncertainty over the nine-in-one elections came to an end last month, it said.
The tax issue and likely interest rate hikes next year might continue to weigh on property transactions, the survey said.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last