TAIPEI (Taiwan News) — Taiwan Economic Research Institute (TERI), an economic think tank, has commented on the macroeconomic trends affecting the wider world and the outlook for Taiwan’s manufacturing sector.
In Taiwan’s domestic manufacturing sector, per TERI, the increase in international oil prices in October and the rise in the price of most upstream petrochemicals have pushed up the cost of purchasing plastic raw materials.
At the same time, the downstream demand for chemical industry purchases has increased in Southeast Asia and India as the pandemic situation eases there. This means major manufacturers have processed backlog orders and are resuming regular production once more.
Therefore, about 60 percent of chemical industry manufacturers in Taiwan are optimistic about this month’s business performance overall.
TERI views the ongoing shortages and increasingly tight supply chains and soaring energy prices as the main driver of a sustained rise in the price of commodities, according to a report by Investor News.
This has caused the recent decline in the Purchasing Managers' Index (PMI) — an index of the prevailing direction of economic trends in various sectors — in the manufacturing sectors in both Europe and the U.S., resulting in soaring consumer prices.
In addition, the recent spread of COVID-19 cases in Europe and the U.S. may be a cause for concern. Even though vaccine coverage rate is quite high, the number of confirmed cases continues to rise, which may threaten economic performance.