Taiwan Business Sentiment Rises on AI Export Boom
By TaiwanPlus
Business sentiment in Taiwan has improved as strong AI and semiconductor demand boosts exports, construction and manufacturing. The Taiwan Institute of Economic Research says its construction indicator rose, driven by demand for factory building and renovation in the booming tech sector. Exports grew more than 30% in July from a year earlier, while machinery and electrical goods also posted gains. But sentiment remains weak among car and motorcycle manufacturers, and the services sector declined. TIER says financial market volatility and geopolitical uncertainty remain key risks for the economy.
Business Sentiment Improves
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Business Sentiment Improves
REPORTER:
A top think tank in Taiwan says overall business sentiment has improved, as strong AI exports spilled into the construction and manufacturing sectors.
The Taiwan Institute of Economic Research says its construction indicator rose, driven by strong demand from the booming tech sector.
Exports grew by more than 30% in July from a year earlier. For traditional industries such as machinery and electrical goods, exports were also up.
But sentiment remains weak among car and motorcycle manufacturers. The services sector also declined.
Looking ahead, TIER says financial market volatility and geopolitical uncertainty remain key risks.
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Taiwan's Economy
REPORTER:
A top Taiwan think tank says overall business sentiment has improved, as strong AI exports spilled over into other sectors, but companies' expectations for the rest of the year have not changed, amid mixed economic signals from the rest of the world. But the Taiwan Institute of Economic Research warns against reading too much in US consumer and labor market data.
Manufacturing posted a gain of 2.48 points in the think tank's Composite Indicator for July. AI-related exports continued to grow more than 30% from last year, although the rate of growth is slowing. Meanwhile traditional sectors like chemicals, machinery and food have also become more upbeat. But makers of cars, motorbikes and electronics remain especially glum about the future. Services were also down 1.29 points. But construction was another highlight: the Indicator rose by 2.96 points – mainly on demand from the booming technology sector.
TIER says the main risks to watch in the coming months are from financial markets as well as geopolitical uncertainty.
REPORTER:
Taiwan's overall business sentiment improved in July, but companies have not changed their expectations for the rest of the year amid mixed economic signals from the rest of the world. That's what Taiwan's top economic think tank says, although it warns not to read too much in US data:
expect the economy to remain stable through the rest of the year
monthly composite business sentiment survey
Taiwan's economic outlook has stabilized following a first half marked by geopolitical tensions, but also exceptional AI-driven growth, adding that Taiwan is relatively isolated from US consumer and labor market trends.
