The electronics industry is helping pull Taiwan’s manufacturing sector out of a contraction, reports FocusTaiwan.
Data compiled by TIER (Taiwan Institute of Economic Research), a leading Taiwan think-tank, revealed the overall composite index for the manufacturing sector in May stood at 10.12 points and “flashed a blue light” (indicating contraction) for the third consecutive month. However, the electronics sector “flashed a green light” (indicating stable growth) as it continued to benefit from emerging technologies such as 5G and high performance computing applications.
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 contraction.
Reporting comments by TIER, FocusTaiwan said, “While the global economic fundamentals remained slow, the higher May figure also reflected confidence in the local economy as Taiwan has been doing well in fighting COVID-19, which has led consumers to spend more.”
“TIER, however, said local manufacturers should pay attention to a second wave of COVID-19 infections in some economies, which could again affect the global economic fundamentals,” reports FocusTaiwan.
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