Sentiment in Taiwan’s manufacturing sector last month declined for the second month in a row in part due to decreased exports, according to a survey released yesterday by the Taiwan Institute of Economic Research (TIER).
The business sentiment gauge for the nation’s manufacturing sector slightly decreased by 0.04 points from August to 97.49 last month.
The unexpected drop can be attributed to fewer working days due to a series of typhoons that hit the nation last month, which dampened the sentiment of local manufacturers, the institute said.
However, the performance of the manufacturing industry improved compared with the first half of the year, TIER Economic Forecasting Center director Gordon Sun (孫明德) said in the report.
The nation’s manufacturers are more optimistic about the business outlook in the next six months, as the imports of capital equipment and export orders increased last month, according to the survey.
About 20.2 percent of respondents said they are optimistic about their businesses, up by 7.1 percentage points from a similar survey conducted in August, while 19.7 percent said they are seeing a decline in business, down by 0.8 percentage points from the previous month, the survey showed.
However, among all exports, only the semiconductor segment achieved substantial growth last month, Sun said, adding that raw material and machinery exports are expected to rebound next year.
Apple Inc’s new iPhone models had a limited effect on Taiwanese semiconductor makers last month, as the company launched its new products in the middle of the month, he added.
Meanwhile, the composite index for the service sector rose 2.4 points from a month earlier to 86.77, supported by the traditional high season for local retailers, the survey showed.
The index for the construction industry rose 1.32 points to 87.78 last month, as companies are speeding up infrastructure construction to meet deadlines by the end of the year.
However, builders are still conservative about the real-estate market’s outlook due to expectations of declining property prices and increasing taxes.
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