Taiwan’s manufacturing sector saw stable growth in January, flashing a green light. It ended 7 months of yellow-blue light, or sluggish performance. That was the word from the Taiwan Institute of Economic Research (TIER) on Thursday.
The growth was influenced by a more robust global economy, higher global oil prices, and double digit growth in exports. Export orders are at a recent high, and a rise in the stock market also shows optimism among businesses.
But TIER researcher Fang Jun-deh says the recent growth does not mean the long term outlook for manufacturing has completely changed.
"As we look ahead, January’s manufacturing signal saw a green light, and that was the first time we saw a green light since March 2017. But it’s still premature to say there’s been a major turnaround in the manufacturing sector," said Fang.
Fang said February exports were positively impacted by the Chinese New Year but growth in the sector has dropped from 16.1% to 7.3%. He said the long term outlook for the manufacturing sector is still uncertain.