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Taiwan's manufacturing sector remains sluggish in January

Taiwan's manufacturing sector remains sluggish in January

Taipei, March 6 (CNA) The composite index of Taiwan's manufacturing sector continued to flash a yellow-blue light in January, signaling a slowdown that has already lingered for several months, a local think tank said Friday. It was the 10th consecutive month that the manufacturing sector showed signs of sluggishness, according to the composite index compiled by the Taiwan Institute of Economic Research (TIER). TIER's manufacturing composite index for January rose 0.86 points from the previous month to 11.97 on strong sales of electronics and information technology products, leading to a rise in the industrial production index and export orders. Thanks to demand ahead of the Lunar New Year holiday in February, the production index of the manufacturing sector rose 9.7 percent in January from the previous month, while export orders increased 8.1 percent. Under the TIER's five-color rating system, the percentage of industries flashing a blue light -- representing recession -- fell from 44.09 percent in December 2013 to 27.8 percent in January, while those flashing a yellow-blue signal rose from 24.82 percent to 31.76 percent. The other three colors in the system are green, reflecting steady growth; yellow-red, meaning mild overheating; and red, indicating overheating. The composite indicator measures five factors in the manufacturing sector: demand, cost, pricing power, business environment and raw material inputs. Among different industries, the daily goods sector, including textiles and clothes, flashed a green light in January thanks to increasing demand for international brands. Also signaling a green light were the machinery, electronics and information technology sectors because of stronger demand. Petrochemical product manufacturing remained in the doldrums in January, however, maintaining a blue light due to plunging international crude oil prices, according to TIER. The car and automotive parts sector worsened from a yellow-blue light in December to a blue light in January, because of a 6.31 percent fall in export orders for automobile parts and components, the TIER said. (By Chen Cheng-wei and Elizabeth Hsu)


Updated : 2021-09-20 20:12 GMT+08:00