On Monday, the Taiwan Institute of Economic Research stated how the manufacturing sector of Taiwan, in August, had been hurting for the 10 straight months because of the persisting worries over the trade skirmishes between China and the U.S.
According to TIER, which is among Taiwan’s forerunning economic think tanks, Taiwan-based manufacturers, hurt by China’s and the U.S.’s trade war, stayed worried over demands around the world, especially since the trade war appears to not have led to a solution.
Even though the manufacturing sector’s composite index for the month of August increased 0.20 points, relative to the previous month, to reach 9.21, according to data released by TIER, the score was still in the contraction range of 10.5 or less than 10.5 points.
TIER added how one positive point for Taiwan was that it had been receiving bigger investments by Taiwan-based producers in established China so they could save on the increased tariffs levied by the United States on Chinese goods. This, in turn, enhanced Taiwan’s overall activity.
The manufacturing sector of Taiwan, mostly export-focused, has been assisted by brands around the globe who have been striving to launch new technological gadgets, to make up for the international trade skirmishes.
To describe fully the economic activities, the think tank makes use of a five-color system. Here, the red color implies overheating, yellow-red shows rapid growth, green indicates constant growth whereas blue shows contraction.
TIER stated how 2 sub-indexes, namely general business climate and pricing, out of a total of 5 total factors of the composite index, rose in August to 0.21 and 0.29 respectively, relative to the previous month.
TIER added how the sub-indexes on costs, demand, and purchases of raw materials too fell in August, reaching, 0.10, 0.11, and 0.08 respectively, compared to the previous month.
In spite of the variations seen August, all 5 factors displayed blue lights, showing contraction.