Signs that the economic downturn may be easing have helped boost confidence among manufacturers and service providers for the coming months as the government’s stimulus efforts begin to affect the economy, a survey by a local think tank said yesterday.
The poll conducted by the Taiwan Institute of Economic Research (TIER, 台經院) showed that the proportion of manufacturers that were optimistic about the next six months rose to 42.7 percent last month, from 41.4 percent a month earlier.
Meanwhile, the proportion of firms that were pessimistic dropped from 20.7 percent to 16.8 percent, and the percentage of firms with a neutral view increased from 37.9 percent to 40.5 percent, the survey said. TIER’s macroeconomic forecast center director Chen Miao (陳淼) linked the increasing optimism to expectations the government’s spending programs would spur domestic demand in the second half of the year.
In addition, consumer electronic exports are expected to improve, even though global demand remains weak, Chen said.
The service sector also reported an increasing upbeat sentiment, with the climate gauge picking up 9.78 points to 103.26 last month, the poll said.
Chen said the rallies in the stock market benefited securities firms, which saw their aggregate after-tax profits surging 31.63 percent to NT$4.483 billion (US$137.2 million) last month.
Business turnover for major listed firms and department stores jumped 21.28 percent and 24 percent respectively, the survey said.
“That explains why retailers and wholesalers voiced optimism about the business outlook,” Chen said.
However, the survey said restaurants did not share the upbeat sentiment as their business income dipped 10 percent in the first quarter, while last month marked the beginning of the low season.
Chen said it was better to maintain a cautious attitude as global visibility remained poor this year.
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