In October, the manufacturing-based composite index, based on TIER data, one of the leading business think tanks in Taiwan, fell by 2.22 points from the previous month to 92.37, which reflects business sentiments in the manufacturers.
While in October the old economies saw the order increase, it was not sufficient to increase their feelings, TIER said. In its peak season in October, the information and communication industry was boosted but the prices of some technological devices continued to fall, impacting the industry’s feelings, TIER said.
TIER President Chang Chien-Yi said at his press conference that the latest index report was no surprise because of global trade problems in the export-oriented manufacturing sectors, but TIER was upbeat in 2020.
In Taiwan, 21.9% thought the business environment had improved by October, compared to a month earlier, from 19.0% in a similar poll in September, while 34.8% thought that it had deteriorated, down from 38.1% a month earlier.
The manufacturers of chemicals, rubber, and steel have been less comfortable with the business climate, said TIER.
In the October survey, approximately 18.3% of Taiwan producers expected a better business climate than in September, up from 16.0% in the following six months, while 28.5% expected it to degrade, up from 21.0% a month in the previous survey.
Meanwhile, in October, the sub-index for the property sector grew from a month earlier until 103.01, when new buildings began after delaying and developers increased their revenues, TIER said. Strong transactions in residential and commercial property have also increased the feeling of property developers in October.
In the service sector, the TIER data showed that in October, the composite index decreased by 0.07 points from the month before to 89.04.
The think tank said retail sales were improved on the extended holidays of ten Oct., while the local equity market showed benefit, but the business situation generally kept cautious with local retailers and securities firms in the next six months.