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Market Chatter: Taiwan Manufacturing Stays in 'Green' Zone for Second Straight Month Despite Slight Dip in Climate Score

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Taiwan's manufacturing sector remained in the stable "green" zone for a second consecutive month in April, although its business climate score saw a minor decline amid Middle East tensions, Focus Taiwan reported Tuesday, citing the Taiwan Institute of Economic Research (TIER).

Strong artificial intelligence demand continued to bolster the sector, but some firms' early inventory purchases triggered by the regional conflict weighed on trade-related metrics, causing the composite index to drop by 0.97 points to 13.66, the news daily said, citing the institute's statement.

While export price increases lifted the pricing component, slower year-on-year growth in exports, imports, orders, and industrial production contributed to the modest overall score reduction, the report said.

Sustained demand for AI, high-performance computing, and cloud services drove growth in electronics and machinery industries, whereas traditional sectors faced challenges from volatile energy prices, uneven demand recovery, and heightened global competition, the publication said.

The plastics and rubber industry shifted to rapid-growth yellow-red, but the electronics components sector cooled from overheating red to yellow-red due to inventory adjustments by end customers, it added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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