Manufacturing still slow in December: TIER
The China Post news staffTAIPEI, Taiwan -- Taiwan's manufacturing sector continued its sluggish pace in December, said the Taiwan Institute of Economic Research (TIER) yesterday.
February 1, 2013, 2:53 pm TWN
The think tank gave manufacturers an overall score of 9.72 for December, which was a decline of 0.07 from the adjusted figure of 9.79 for November. The 9.72 score was represented by a blue signal.
TIER uses a five-signal system to describe the state of manufacturing in Taiwan. The signals are red, yellow-red, green, yellow-blue and blue, which denote an economy that is, respectively, overheating, robust, stable, sluggish and contracting.
According to TIER, there were certain positive factors in December, including an 8.5-percent rise in export orders, which were calculated in the U.S. dollar. Other incentives included a 9-percent rise in exports and a 2.84-percent increase in industrial output.
Yet these incentives were offset by a strengthening of the New Taiwan dollar, which rose by 3.96 percent in December. The appreciation led to a decline in the production, retail and import of goods denominated in the local currency.
These factors combined to lower December's overall score, TIER said.
According to TIER, Taiwan manufacturers are faced with three main challenges this year, namely continued debt limit disputes in the United States, a sharp decline of the Japanese yen and its possible effects, and economic uncertainties in China.
Yet overall, most industries that make up Taiwan's manufacturing sector will pick up steam this year, and a yellow-blue signal may be possible sometime in the first quarter, TIER said.