Nation's manufacturing index for September down: think tank
CNATAIPEI -- The local manufacturing sector showed signs of a slowdown in September, with the monthly manufacturing index falling from a month earlier due to weakening global demand, an economic think tank said yesterday.
October 26, 2013, 12:04 am TWN
In a monthly research report, the Taiwan Institute of Economic Research (TIER) said that the September manufacturing composite index fell to 97.67 points from 98.78 points recorded in August.
Global demand in September was overshadowed by fears of the U.S. government shutdown and a failure to raise the U.S. government's debt ceiling, which was likely to have an impact on the global financial markets as well as on the world's economy, the TIER said.
As a result, Taiwan's exports in the month fell, affecting the local manufacturing sector, the TIER said.
According to the TIER, Taiwan's exports for September fell 7 percent from a year earlier and outbound sales for the third quarter dropped 0.78 percent year-on-year.
The think tank said that although exports of locally made electronics products hit a record high of US$7.83 billion in September ahead of a peak season in the fourth quarter, sales of other products, such as optical devices, remained stagnant during the month.
In addition, the TIER said, a standoff in the Legislative Yuan prompted many manufacturers to hold a cautious attitude toward the market climate, which also helped to send the September composite index lower.
These unfavorable external and internal factors also undermined the climate of the local service sector and the construction sector, the TIER said.
In September, the service composite index fell 1.60 points from a month earlier to 93.63, the think tank said. It was the second consecutive month in which the index had registered a decline.
The construction composite index for September fell to 93.32 points from 95.10 points recorded in August, the TIER said. It was the fourth consecutive in which the index had trended lower.