TAIPEI (Taiwan News) — Taiwan’s manufacturing business climate showed a yellow-blue signal in October, indicating a sluggish economy, the Taiwan Institute of Economic Research said Monday.
TIER said diverging market views on AI and uncertainty in the global economy have made firms cautious, per CNA. Manufacturers were urged to strengthen resilience to navigate potential risks.
Electronics and ICT exports remained strong due to demand for emerging technologies, per Liberty Times. However, year-on-year growth in export orders and production slowed, pulling down raw material input and demand indicators.
Traditional manufacturers also reported weaker monthly outlooks, and some electronics machinery firms adopted conservative views for the next six months. The October manufacturing signal fell to 10.56, maintaining the yellow-blue light for low activity.
Sector-level analysis showed recessionary blue lights rose from 54.11% in September to 57.25%, and yellow-blue lights increased from 14.01% to 15.40%. Green lights signaling stability jumped from 10.40% to 24.02%, showing some sectors held steady.
Computer, electronics and optical products posted record exports to Europe and the US, but shipments to Japan and China declined. Slower growth in export orders and moderated stock gains shifted the sector’s signal from yellow-red to green.
TIER highlighted easing trade tensions after the Xi-Trump meeting delayed export controls and tariffs for a year. Analytics firms like S&P Global have revised their economic forecasts, though uncertainties remain from US budget deadlocks and China’s slowing consumption and exports.
Taiwan’s manufacturing outlook is mixed. Heavy AI investment by US firms has caused market concern, slower export orders may temper growth, and year-end pressures keep traditional sectors cautious. TIER recommended strengthening resilience to maintain stable development.
