Taiwan manufacturing, service sector confidence cools in October

TAIPEI -- Taiwan's manufacturing and service sectors are less confident of future growth due to downward performances, a report showed Friday.

The confidence index for manufacturing edged down by 0.97 points to stand at 100.69 points in October, while the service and construction sectors also dropped, according to a report released by the Taiwan Institute of Economic Research (TIER).

The island's exports grew 3 percent year on year in October, a sharp drop from the record 28.1-percent increase in September, and the smallest growth in the last 13 months.

Meanwhile, imports of semi-conductor equipment have been falling at double-digit rates for six months, weighing on export-oriented manufacturers.

Service sector sentiment also cooled in October, with its index down 2.23 points compared with September as security traders faced shrinking trading volume, and insurance firms raked in less revenue.

Confidence in the construction industry has also shifted its upward trend, dropping 2.41 points from September due to a damp outlook in project implementation and the local property market.

"The island's economic recovery is mainly driven by exports, while local private consumption and investment remain sluggish, leaving the locals unable to feel the growth," according to TIER President Lin Chien-fu.