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Sentiment on manufacturing activity turns cautious

Sentiment on manufacturing activity turns cautious

Taipei, Sept. 25 (CNA) Sentiment toward the local manufacturing sector turned cautious at a time when optimism about a global economic recovery has dropped, the Taiwan Institute of Economic Research (TIER), a local think tank, said Thursday, citing the results of a survey. The TIER said the manufacturing composite index for August stood at 102.61 points, down 1.83 from a revised 104.44 for July. The think tank said the economy in the eurozone has been impacted by geopolitical tensions, while China has reported lower-than-expected economic data recently, and Japan's export numbers have remained disappointing. Amid such unfavorable circumstances, the think tank said, local manufacturers have held a cautious attitude toward their business prospects. In the survey, 19.7 percent of respondents in the local manufacturing sector thought that their business conditions fared better in August than July. The August figure fell from July's 30.9 percent. The survey shows that 24.4 percent of those polled in the local manufacturing sector agreed that their business conditions improved in August from a month earlier. The August number rose from July's 22.3 percent. About 28.9 percent of the respondents said their businesses will improve over the next six months, down from 36.6 percent recorded in the July survey, the TIER said. The TIER said that 18.6 percent of the respondents said that their business conditions will get worse over the next six months, up from 12.5 percent recorded in the July survey. The think tank said that respondents in the local precision equipment segment appeared more pessimistic about their business prospects. Although the August index for the entire manufacturing sector retreated, the index for the construction segment rose 6.76 points from July to 96.47 on the back of the government's efforts to push for public work projects. In August, the services composite index also fell 3.32 points from July to 100.83, the TIER said. The TIER said that securities companies and restaurant owners were more downbeat about their business outlooks over the next six months, while the warehousing and transportation segment appeared more upbeat. (By Lin Meng-ju and Frances Huang)


Updated : 2021-10-20 17:39 GMT+08:00