Taiwan’s manufacturing sector contracted for the 10th consecutive month in August amid lingering concerns over the US-China trade dispute, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.
Manufacturers remained anxious over global demand, hurt by the trade dispute, which shows no sign of being resolved soon, the institute said.
Although the composite index for the manufacturing sector rose 0.20 points from July to 9.21, it still indicated contraction, it said.
A silver lining for Taiwan has been increased investment by returning Taiwanese manufacturers to avoid additional US tariffs on Chinese goods, which has boosted overall activity in Taiwan, the institute said.
The launch of new electronic devices by international brands has also helped Taiwan’s export-oriented manufacturers offset global trade doldrums, TIER said.
Of the index’s five factors, the subindices of pricing and general business climate rose 0.29 and 0.21 in August from July respectively, the institute said.
The subindices of demand, costs and raw material purchasing fell 0.11, 0.10 and 0.08 respectively, it said.
Despite recent weakness in the manufacturing sector, TIER said that the high-tech sector should get back on track in the fourth quarter due to advances in 5G technology and the arrival of the peak spending season for consumer electronics.
However, the old-economy sector is expected to remain affected by weakening global demand for the rest of the year, it said.
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