The Taiwan Institute of Economic Research (TIER) announced on Friday, July 31, that its manufacturing sector business climate indicator for June reached 17.30 points. TIER assigned this score a yellow-red light, indicating an upward trend.

May’s figure was also retroactively revised upwards to a yellow-red light, with a score of 16.22, marking two consecutive months at this level. TIER said that demand for artificial intelligence, high-performance computing, and cloud services were the primary forces driving the manufacturing business climate, boosting indicators for demand, raw material inputs, and pricing. They not only bolstered sectors such as electronic components, computers, and optical products, but also increased demand for machinery and electrical equipment.

TIER says that due to Taiwan’s active participation in global tech supply chains and favorable U.S. tariffs, industries such as machine tools, machinery, hardware fittings, plastics, textiles, and medical devices are expected to expand their U.S. market presence.

However, TIER also noted that some traditional industries are affected by weaker demand and competition from industry peers, with export performance declining slightly compared to the previous month.