Taiwan’s manufacturing sector shows sluggish growth

The local manufacturing sector dropped slightly in September due to a spate of typhoons that hit Taiwan in that month, which reduced the number of working days in Taiwan, according to a survey released Monday by the Taiwan Institute of Economic Research (TIER).

The survey indicated that the manufacturing composite index for September dropped 0.2 points from a month earlier to 11.41, flashing a yellow-blue light for the third consecutive month, following a 15-month blue-light streak.

TIER uses a five-color system to describe economic activity, with red indicating overheating, yellow-red showing fast growth, green representing stable growth, yellow-blue signaling sluggish growth and blue reflecting a contraction.

A yellow-blue light flashes when the composite index is between 10.5 points and 13 points, while a blue light flashes when it is below 10.5 points.

The institute said that due to the fewer working days as a result of typhoons Meranti, Malakas and Megi that hit Taiwan in September, coupled with a drop in export and wholesale prices, the sub-indexes for demand, operating costs, export and wholesale prices dropped slightly for the month.

Source: Focus Taiwan News Channel