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Businesses report weaker operating performance in H2

Businesses report weaker operating performance in H2

Firms in the manufacturing and non-manufacturing sectors reported declines in both operating performance and profit margin, but an increase in employment in the second half of this year compared with the first half, according to a semi-annual survey released Monday by The Chung-Hua Institution for Economic Research (CIER).

CIER is a leading Taipei-based think tank that surveys firms in the manufacturing sector every six months on how they perceive their business prospects over the coming year. This year, firms in the non-manufacturing sector were included in the survey for the first time.

Companies in the manufacturing industry reported that they are most concerned about economic-related issues, with fluctuations in exchange rates their top concern, followed by China's economic growth and international energy and raw material prices, according to the survey.

Firms in the non-manufacturing sector are most concerned about the 2016 presidential election, China's economic growth and fluctuations in exchange rates, in that order, the survey shows.

The survey found that 71.2 percent of companies that responded to the survey forecast a weaker Taiwan dollar and a stronger U.S. dollar.

Meanwhile, 50.1 percent and 41.6 percent of the firms, respectively, expected exchange rates between the Taiwan dollar and the Japanese yen and the local currency and the South Korean won to remain flat.

The survey also shows that 60.6 percent of manufacturers held optimistic views about their businesses for the coming year, while 50 percent of firms in the non-manufacturing sector were bullish about their 2016 prospects. (By Chen Chen-wei and Evelyn Kao)

Updated : 2021-09-16 23:20 GMT+08:00