TAIPEI (Taiwan News) — Taiwan’s non-manufacturing index (NMI) saw its steepest decline in a year in June, with the hospitality and restaurant sectors in particular suffering due to COVID-19, a leading think tank said Friday (July 2).
In its latest report, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said the NMI fell by 3.2 percent to 46 percent, its most rapid drop since June 2020. While the index for food and hospitality-related businesses fell to 16.7 percent, their outlook in the coming six months stands at 0 percent, Radio Taiwan International (RTI) reported.
The economic sectors relying on domestic consumption continue to feel the impact of the Level 3 COVID alert in place since mid-May. It's expected to last until at least July 12.
In contrast, the manufacturing sector is more upbeat about the next six months due to Taiwan’s positive export performance. Even so, foreign exchange rates and the impact of the Delta variant of the coronavirus on several countries might still spoil the picture, CIER said.