Taiwan Manufacturing and Service Sectors’ Outlooks in December 2009
3/10/2010 0:0:0
The manufacturing and service sectors’ results from the Taiwan Institute of Economic Research (TIER) December 2009 survey proved positive.
Taiwan Manufacturing and Service Sectors’ Outlooks in December 2009
The proportion of manufacturing firms who perceived business were better than expected in December fell by 0.1% while those who perceived business were getting worse also decreased by 1.5%. Outlooks for the next six month were more bullish. Manufacturers who perceived business would be better in the next six months increased, from 35.6% in November to 41.5% in December. The numbers of firms who perceived the economic outlooks were worsening decreased, from 20.3% in November to 10.4% in December.Taiwan Manufacturing and Service Sectors’ Outlooks in December 2009
One of the main reasons behind the more optimistic outlook was the global economic recovery. While December is typically at the tail end of the export peak season, the expected pickup in demand in both Europe and the US improved manufacturers’ outlooks. The expected improvement in export price enhanced manufacturers’ confidence in the low seasons. The composite indicator for December, adjusted for seasonal factors on moving average, saw an increase, from 117.10 points in November to 117.15 points in December.
The TIER Service Sector Sentiment Index for December also saw a rise from the November survey, from 122.50 points in November to 125.21 points in December. According to the businesses surveyed, the retail business and restaurant business sectors saw improving sales as peak season approached. The capital market rallying also sent the TaiEx soaring. The brokerage houses’ profit level increased by some 193.03% over the previous month in December, making the sector extremely bullish, which also affected both the insurance and the banking sectors’ outlooks. Moreover, all businesses surveyed were bullish towards future market outlooks, which led to the improved service sector sentiment.
For more information, please go to Taiwan Institute of Economic Research’s website.