COVID-19: COVID-19 hits manufacturing, services: TIER

MIXED PERSPECTIVES:
While manufacturers remain cautious about the spread of the Delta variant overseas, the service industry is optimistic as a local outbreak is reduced

  • By Crystal Hsu / Journalist

Last month, business confidence in the manufacturing and service sectors fell over concerns over the rapid spread of the Delta variant of SARS-CoV-2 around the world, but improved for the construction sector due to an increase in infrastructure projects, according to a survey by the Taiwan Institute of Economic Research (TIER, 台灣 經濟 研究院) showed yesterday.

Confidence indicator for manufacturing industry fell 0.47 points to 103.35 from the previous month, as some countries tightened measures to tackle COVID-19 outbreaks and disrupted supply chains said the director of the TIER economic forecasting center, Gordon Sun (孫明德).

The disruption was most evident in Vietnam and Malaysia, prompting international research organizations to lower GDP growth forecasts for Southeast Asia, Sun said.

Photo: Allen Wu, Taipei Times

Strict shutdowns have affected production at Taiwanese footwear and clothing suppliers that have manufacturing facilities in those countries, Sun said.

This explains why companies optimistic about the outlook for the next six months fell 4.5 percentage points to 31.7%, while those who are pessimistic also lost 2 percentage points to 15.4%, said the Taipei-based think tank.

Suppliers of electronics, base metals and machinery remained positive about the business outlook on expectations of high seasonal demand, while manufacturers of chemicals, paper and leather have become cautious, according to the investigation.

The business confidence index for the service sector slipped 1.34 points to 91.37, even as the government conditionally lifted bans on food services and relaxed collection requirements for food facilities. entertainment and recreation.

Retailers and restaurants are bullish about business improving over the next six months, while securities firms brace for a slowdown after steep market corrections last month, according to the survey.

Business confidence in the civil engineering and construction sectors rose 1.74 points to 103.02, as local governments stepped up flood control projects for the typhoon season, he said. he indicates.

Real estate transactions fell last month, but prices remained firm, suggesting a resilient market, he said.

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