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Manufacturing sector flashes 'yellow-blue' for 8 months in row

Manufacturing sector flashes 'yellow-blue' for 8 months in row

Taipei, Dec. 29 (CNA) Taiwan's manufacturing sector flashed a "yellow-blue" light in November for the eighth consecutive month, with its continuing slowdown being reflected in the lowest composite index of 9.57 points recorded since May 2009, the Taiwan Institute of Economic Research (TIER) reported Thursday. The index was at the same level when the recession took place in 2008, TIER added. The think tank attributed the sector's continuing slowdown to the ongoing European debt crisis, the sluggish recovery in the United States and the weakened export trade in China. The TIER uses a scale of five colored lights as a gauge of the manufacturing sector's economic strength. At the top of the scale, a red light signifies overheating, yellow-red indicates the sector is heating up, green conveys stable growth, yellow-blue represents sluggishness, and the color blue points to contraction. Gordon Sun, deputy director of the TIER's Macroeconomic Forecasting Center, said the machinery equipment sector showed improved vitality in November. It flashed "green" during the month, an improvement from October's "yellow-blue," Sun said. The electrical and electronics, consumer goods and transportation sectors continued to flash "yellow-blue," while the economic vitality of the food sector slowed to flash "yellow-blue" in November from October's "green," due to the ongoing global economic downturn and a drop in purchasing power, Sun said. Although the demand for computers and electronic products bounced back during the Thanksgiving and Christmas holidays, the future outlook is still uncertain, Sun said. In addition, Sun pointed out that low international raw material prices have contributed to the petrochemical, rubber, and metal goods sectors to be gauged "blue,"the lowest color on the five-color index, after flashing "yellow-blue" in October. ( By Lin Hui-chun and Maia Huang)


Updated : 2020-11-30 03:32 GMT+08:00