Business confidence last month increased among manufacturers, service providers and construction firms, as non-tech product suppliers benefited from China’s post-pandemic opening while tech firms waited for a rebound, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.
“Three consecutive months of upswings in sentiment signifies the worst is over and things would improve going forward,” TIER economist Gorden Sun (孫明德) said.
The sentiment gauge for the manufacturing industry picked up 3.12 points to 91.19, marking the fourth straight month of increases and suggesting that a recovery is around the corner, the Taipei-based think tank said, citing a monthly survey.
Photo: CNA
The ratio of firms that saw improved business last month gained 11.1 percentage points to 30.1 percent, while companies with business downturn fell 19.1 percentage points to 25.1 percent, it said.
Selling prices for steel, petrochemical and electrical products stabilized in the wake of China’s reopening, but demand for electronics and communication devices remained weak in the US and Europe, Sun said.
Electronics providers with a positive business outlook for the next six months dropped 1.2 percentage points to 33.9 percent, while firms with negative views gained 1.3 percentage points to 15.5 percent, it said.
Electronics vendors are heavyweights in Taiwan, as they supply 60 percent of the world’s chips.
Global semiconductor supply has gradually returned to healthy levels and demand for inventory replenishment should begin in the second half of this year, Sun said.
Taiwan’s semiconductor firms are international leaders and would continue to meet the needs of global clients, the economist said.
Manufacturers of non-tech products are more optimistic, with about 60 percent of chemical product suppliers expecting business improvement, it added.
The confidence reading for service providers added 3.21 points to 94.97, growing for two months in a row, it said.
Daily stock turnover regained some muscle, favorable for brokerage commissions and interest on income, it said.
However, business at retailers, hotels and restaurants cooled slightly after the holiday effect faded, it said.
The confidence measure rose 1.2 points to 93.31 for construction firms and property brokers, due to the government’s highway improvement projects, construction on technology parks and carbon emission-reducing projects by state-run enterprises, TIER said.
Property transactions are taking a hit from unfavorable policy and monetary tightening, it said, adding that buying interest is likely to stay weak after the central bank on Thursday raised interest rates for the fifth time and economic uncertainty lingers.
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