Taiwanese manufacturers last month shed some confidence about their business prospects for the next six months, while service providers and construction firms turned slightly positive, as the economic recovery remains unbalanced, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.
The sentiment gauge among local manufacturers lost 1.75 points to 93.12, falling for the fifth consecutive month, as demand for advanced chips remained strong, but the sales of the newest Apple Inc iPhones disappointed, weighing on the shipments of DRAM, flat panels, circuit boards and other electronic components, the Taipei-based think tank said.
Looking forward, firms with a positive outlook about their business prospects shrank 1 percent to 22.9 percent, while firms with pessimistic views declined 7.8 percentage points to 21 percent, the institute said.
Photo: EPA
The results came after metal and machinery tool manufacturers are looking at business improvement in the coming months, although non-tech firms remained weighed by weaker demand this year, TIER economist Gordon Sun (孫明德) said.
Most firms prefer to follow a wait-and-see approach until uncertainty linked to US president-elect Donald Trump’s tariff threats settles.
The business confidence reading among service providers edged up 0.83 percentage points to 92.15, ending three months of declines, the institute found.
The institute attributed the upturn to better retail sales, as major department stores launched anniversary promotion campaigns and the high season for e-commerce operators approach.
The upbeat sentiment more than offset the effect of a drop in the number of working days caused by two typhoons, it said.
In addition, the rallies in financial markets at home and abroad propped up revenue at local proprietary traders, after major tech firms delivered stronger-than-expected earnings and foreign portfolio managers raised holdings in local shares, the institute said.
Local retailers and hospitality providers expect the negative effect linked to a reduction of inbound tourists to Taiwan to be mitigated in the coming months with the coming of the holiday season.
Retailers, restaurants, hotels and recreational facilities have taken a hit due to Taiwanese preferring to vacation abroad .
The sentiment gauge among local construction firms and real-estate brokers picked up 2.62 percentage points to 103.83, reversing a three-month retreat, the institute said.
Civil engineering firms benefited from government policies to speed up construction on public works projects, but real-estate brokers experienced a slowdown in housing deals as the housing boom tapered off, it said.
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