The climate gauge for the nation’s manufacturing industry last month turned from “blue” to “yellow-blue,” aided by the peak sales season for technology products and inventory demand from China’s Huawei Technologies Co (華為), the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.
The manufacturing business index compiled by the Taipei-based think tank reached 11, up 1.03 points from July. It emerged from five straight months of being in a recessionary state, or “blue,” but is still registering a slowdown.
TIER reported signs of improvement in input materials, demand, costs and the overall operating condition, although selling prices continued to decline.
As the peak season is approaching, the growth momentum for export orders improved and manufacturers became more optimistic about their business prospects, the institute said.
Launches of new processors by Intel Corp, Nvidia Corp and Advanced Micro Devices Inc spurred upgrade demand, while the COVID-19 pandemic bolstered notebook computer sales, it said.
Huawei Technologies Co (華為) built up inventory ahead of the US government’s Sept. 15 deadline for shipping chips to the Chinese smartphone maker, which also benefited local firms in its supply chain, the institute found.
As a result, the business climate for related suppliers flashed “green,” indicating steady growth, it said.
The gauge for the petrochemical sector remained “blue,” as the pandemic caused a slump in demand for oil products and major manufacturers coped with a lack of business by conducting annual maintenance, the institute said.
Sectors selling machinery equipment and metal products fared better, registering “green,” thanks to a recovery in demand as countries opened up their economies, it said.
The signal for automakers and auto parts firms remained in contraction territory, as Ghost Month, the seventh month of the lunar year, weighed on buying interest, the institute said.
Makers of food products were helped by the government-issued Triple Stimulus Vouchers and improved from “blue” to “yellow-blue,” it said.
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