Business confidence among Taiwanese manufacturers picked up last month in light of better order visibility, a survey released yesterday by the Taiwan Institute of Economic Research (TIER, 台經院) showed.
The sentiment gauge for the manufacturing industry was 93.42, an increase of 1.29 points from one month earlier, the monthly survey found.
A de-escalation in trade tensions between the US and China allowed major manufacturing sectors to recover some confidence, the Taipei-based think tank said.
The number of manufacturers who held positive views rose to 23 percent from 17.5 percent in October, the survey showed, with the ratio surging to more than 35 percent for companies in the steel and electrical machinery industries.
In particular, demand for advanced chips gained traction, while that for DRAM bottomed out, TIER said.
That explained why local electronic component suppliers were generally optimistic about business prospects in the coming six months, the institute said.
Manufacturers in most other sectors were neutral about the landscape ahead, the survey showed.
By comparison, sentiment in service-oriented and construction sectors declined due to an uncertain outlook, it said.
The business confidence measure for the service industry stood at 87.53 last month, 0.54 points lower from one month earlier and declining for a fourth straight month, it added.
While anniversary promotions and the Singles’ Day online shopping event helped boost retail sales, companies in the wholesale business sector witnessed more conservative growth, the institute said.
Daily turnover on the local bourse retreated from one month earlier, affecting sentiment among securities houses and proprietary dealers, it found.
Insurance firms, which have been stepping up efforts to meet business targets, saw their policy sales increase, it said.
The business climate index for the construction sector shed 0.95 points to 101.55, it added.
Builders and civil engineering companies were positive about business last month, due to public and private construction works concluding by the end of the year, the institute said.
However, some firms expected execution delays for subsidiary projects due to political uncertainty, even though the government has proposed raising infrastructure spending next year, it said.
Real-estate brokers conveyed similar concerns as housing transactions slipped last month from October, partly due to sellers and buyers diverging on property values, it added.
Pricing and policy directions after the Jan. 11 elections would set the tone for the housing market next year, the institute said.
Demand for commercial properties might remain strong next year, with support from real-estate investment by domestic life insurance companies, it said.
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