Manufacturing and service indexes go up a level: TIER
June 26, 2014, 12:01 am TWN
TAIPEI--Manufacturing and service activity in Taiwan showed signs of improving on the back of global economic recovery, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said Wednesday.
TIER, one of Taiwan's leading think tanks, said the May manufacturing composite index rose to 103.86 points from April's 101.82 while the month's service composite index grew to 100.98 from 97.48.
The think tank said the job market in the United States has been improving on better-than-expected job creation in nonfarm payroll data in May, while other economic data, including manufacturing activity, also pointed to a recovery.
Meanwhile, China, the second largest economy in the world, has announced some measures to stabilize its economic conditions, which bodes well for the world's economic climate as a whole, TIER said.
The think tank said many Japanese investors have become more willing to invest to raise demand, while the eurozone has also moved toward an economic uptrend.
Driven by these positive leads from overseas, local manufacturing and service activity tilted toward an improvement in May as more local companies were also becoming more upbeat about the economic outlook, TIER said.
In a survey conducted by TIER, 34.3 percent of respondents in manufacturing felt the economy improved in May, compared with the 29.5 percent who felt so in April.
The survey also showed 40.2 percent of the manufacturers were confident the economy will get better over the next six months, compared with the slightly lower 39.5 percent thinking positively the month before.