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29 Novembre 2022

Taiwan

BUSINESS SENTIMENT AMONG MANUFACTURERS WEAKENS FOR 10TH STRAIGHT MONTH

Taipei, Nov. 27 (CNA) Business sentiment in the local manufacturing sector fell in October for the 10th consecutive month, amid fast-growing inflation in the global economy, according to the Taiwan Institute of Economic Research (TIER).TIER data released Friday showed that the composite index for business sentiment in Taiwan's manufacturing sector dropped by a monthly 0.43 points in October to 84.20, the lowest level in two and a half years.The decline came amid continued high inflation in the United States and Europe -- two of the major buyers of Taiwan-made goods -- and strain on the global economy resulting from the war between Russia and Ukraine, TIER President Chang Chien-yi (張建一) said.Under such unfavorable circumstances, inventory adjustments continued, hurting global demand, and an increasing number of manufacturers became cautious in their outlook for production expansion and market conditions over the following six months, he said.The chemical, steel, electronics and machinery industries were more downbeat than others, according to TIER, one of the leading think tanks in the country,For the wider manufacturing sector, "the worst is yet to come," Chang said, citing a World Trade Organization forecast of only 1 percent annual growth of the global economy in 2023.Gordon Sun (孫明德), director of TIER's Economic Forecasting Center, was a little more upbeat, saying that if China eases its COVID-19 lockdowns, consumption will recover and inventory levels will most likely fall, giving a boost to market conditions after the second quarter of next year.He warned, however, that a sharp rise in consumption could result in soaring product prices.TIER data showed that the composite index gauging business sentiment in Taiwan's services sector fell to 91.09 in October, down 3.65 from the previous month.According to TIER, the decline for the third straight month resulted from the uncertainty over global demand, which pushed down the share prices of export-oriented tech gadget suppliers and hurt consumer spending.The tourism and transportation industry, as well as the lodging, and food and beverage sectors, showed signs of improvement, however, lending some support to the service sector, as Taiwan eased its COVID-19 border control measures, TIER said.Meanwhile, the composite index gauging the property industry fell in October by 5.24 percent from a month earlier to 85.10, the think tank said.Transactions of residential and commercial properties in Taiwan's six largest cities -- Taipei, New Taipei, Taoyuan, Taichung, Tainan and Kaohsiung -- fell 6.9 percent from a month earlier, amid a weakening equity market and a cycle of interest rate hikes by the local central bank, TIER said.Liu Pei-chen (劉佩真), a researcher at TIER's Taiwan Industry Economics Database, said the decline in transactions of homes, shops and offices is expected to continue, despite a possible slight drop in prices, as it is unlikely that the central bank will ease its monetary policy anytime soon or that property buyers and sellers will reach any middle ground on price expectations.In fact, Liu said, the uncertainty in the property market may extend into next year, when a large number of newly built residential properties are expected to hit the market.(By Pan Tzu-yu and Frances Huang)Enditem/pc (ICE TAIPEI)


Fonte notizia: Organi di Stampa - Focus Taiwan News Channel