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Manufacturing, service sectors more bullish over future (update)

Manufacturing, service sectors more bullish over future (update)

Taipei, Aug. 28 (CNA) Taiwan's manufacturing and service sectors have grown more optimistic about their economic prospects over the next six months because the global economy has not deteriorated as badly as was expected, an economic think tank reported Tuesday. According to the Taiwan Institute of Economic Research's (TIER's) latest monthly survey of the domestic business environment, the seasonally adjusted manufacturing composite indicator for July rose by 0.76 points to 88.46, from 87.7 the previous month. The service sector composite indicator for the month rose by 2.63 points to 90.68, from 88.05 in June. Both indexes rebounded after having fallen for three consecutive months, according to the economic think tank's report. "Although we have not seen great improvement, this can be seen as relatively good news," said TIER President David Hong. Asked if Taiwan's economy has finally bottomed out and is set for a steady recovery, Hong said "it is very hard to tell" because of constantly changing global economic trends. According to the Taipei-based institute, if businesses maintain their more optimistic outlook, the country's economy should perform better in the latter part of the third quarter or in the fourth quarter of the year. The improved outlook was more the result of companies feeling less gloomy about future economic conditions than of gains in positive sentiment. The monthly economic survey found that 25.5 percent of Taiwan's manufacturers held a positive outlook in July for the economy's prospects in the coming six months, down 0.1 percentage points from June. The percentage of those who were bearish on the economy, however, fell to 30.8 percent from 34.1 percent the previous month, the survey showed. As for the services sector, most businesses also had a conservative outlook, the think tank said. Taiwan's export-oriented economy has been reeling from the sluggish global economy for much of the year. The country's exports fell on a year-on-year basis for the fifth consecutive month in July, tumbling 11.6 percent from a year earlier to US$24.8 billion. Earlier this month, the government cut Taiwan's growth forecast for 2012 to 1.66 percent, and economic indicators released Monday showed Taiwan slumping for the ninth consecutive month. (By James Lee)


Updated : 2021-04-16 06:53 GMT+08:00