Taiwan's manufacturing sector remains Yellow-Blue in November

Taiwan's manufacturing sector remains Yellow-Blue in November

The composite index of Taiwan's manufacturing sector continued to flash a "yellow-blue" light in November, showing economic recovery remains fragile despite slight improvement of industrial production index, export orders, and export/import trade figures, according to the composite index compiled by local think tank the Taiwan Institute of Economic Research (TIER).

It was the eighth consecutive month that the manufacturing sector showed signs of a slowdown, according to the report. Before its eighth consecutive yellow-blue lights, the manufacturing composite index flashed blue in February and March, and green in January. The blue color on TIER’s five-level color scale stands for sluggishness, green for stability, yellow-red for mild overheating, and red for overheating.

TIER indicated that although the U.S. and European countries show obvious economy recovery, international trade was not so active. At the same time, food safety crisis also hampered consumer confidence as well as business revenue in return.

Overall, textile export growth contributed to a sustained economy recovery, flashing a warm "yellow-red" light in November from the green light. Clothing and apparel accessories sector flashed a green light from the sluggish yellow-blue.

To the performance of other industries, petrochemical industry continued to flash a blue light in November as a result of the falling international crude oil price along with double-digit drop of annual growth rate in mineral exports. In November, export orders for information technology and communication products were up 7.32 percent from the previous month, yet continuing to flash a yellow-blue light. Optical product export turned worse to blue from the yellow-blue due to negative growth in output.

Updated : 2021-04-15 00:41 GMT+08:00