CIER economist says economy in transition period
Economist Chen Xin-hui says the island's manufacturing sector should brace itself for a transition period, as businesses continue to navigate uncertainty first triggered by the coronavirus pandemic.
According to Chen, who compiles the manufacturing purchasing managers' index for the Chung Hua Institute for Economic Research (CIER), although economic activity is continuing to lag in some sectors, others are seeing a gradual return to business as usual.
However, Chen says she also expects Taiwan's businesses as a whole, are likely to face headwinds triggered by rising operational costs - some of which is already being seen by some manufacturing sectors, who have been reporting an increase in the price of raw materials.
Chen's comments came on the back of January's Manufacturing PMI, which reflected a seventh consecutive month of contraction by 3.3 points from a month earlier to 40.4, the lowest level since July 2012.