Manufacturing data contract for fourth consecutive monthStaff writer, with CNAThe local manufacturing sector stayed in contraction mode for the fourth consecutive month last month amid continued weakness in global demand, the Taiwan Institute of Economic Research (TIER, 台經院) said yesterday. Data compiled by TIER showed the composite index, which measures the fundamentals of the manufacturing sector, rose 0.36 points from a month earlier to 10.17 last month, but its business climate monitor remained “blue,” indicating contraction, because it was below the 10.5-point cutoff. Last month, the sub-indexes on costs and demand also moved lower by 0.02 and 0.01 from May, while the sub-index on the general business climate bucked the downturn, rising 0.47 from a month earlier. As inflationary pressure remained and interest rates stayed high in the US and European markets, the local manufacturing sector remained under pressure, showing no immediate signs of recovery, the think tank said. Due to weakening pricing power among steelmakers, the base metals industry remained “blue” for the 13th straight month last month, while solid demand for military products boosted prospects for the general business climate of the machinery industry, which was “green” for the third straight month last month.

Source: Taipei Times July 28, 2023 18:41 UTC