TAIPEI (Taiwan News) — Taiwan Institute of Economic Research (TIER) said Thursday (Oct. 3) that the manufacturing economy indicator for August remained steady for the fifth consecutive month.
In a press release, TIER said interest rate cuts by the US and China are beneficial for the recovery of the manufacturing sector, but the strength of the push remains to be seen, per CNA.
TIER explained that despite weak global manufacturing demand and lower international oil prices, Taiwan benefited from increased stocking demand for new international products, the upcoming sales season, and deferred shipment effects due to Typhoon Gaemi in July.
These factors contributed to record-high monthly exports and the highest year-on-year growth in the manufacturing production index since April 2022, boosting raw material input indicators.
TIER’s survey found the manufacturing economy signal value for August was 14.10 points, an increase of 0.29 points from the revised July figure of 13.81 points, per UDN.
TIER said with interest rate cuts by the two major global economies, the pressure on corporate funding costs is alleviated. How strong the momentum will be and whether buying sentiment can be sustained remains to be seen.