Business sentiment in the local manufacturing sector improved in November, as old-economy industries gradually came out of the doldrums previously caused by the COVID-19 pandemic, according to the Taiwan Institute of Economic Research (TIER).

Citing the results of a survey, TIER, one of Taiwan's leading think tanks, said that the composite index for the manufacturing sector, which gauges business sentiment among manufacturers, rose 1.91 points from a month earlier to 103.11 in November, marking the seventh consecutive month of growth.

The November index also hit the highest level since August 2014, according to TIER. Bucking the upturn, the composite index for the property sector moved lower by 2.22 points from a month earlier to 109.23 in November, stopping a two-month rising streak, in the wake of government measures to rein in speculation in the local home market, TIER said.

In terms of the local service sector, the composite index rose 0.02 from a month earlier to 96.84 in November, TIER said, citing a booming equity market, which rose 9.38 percent in the month, as well as rising global cargo shipping demand. Commenting on the more upbeat mood of the local manufacturing sector, TIER President Chang Chien-yi (張建一) said that prior to September, only tech industries saw solid global demand in a strong stay-at-home economy, as well as on the back of emerging tech applications.

Starting from October, many old-economy industries, such as the machinery and rubber and plastics businesses, started to play catch-up, which boosted the entire manufacturing sector, Chang said.

According to the TIER poll, 39.6 percent of the respondents in the local manufacturing sector thought their businesses improved from a month earlier in November, up from 30.3 percent in a similar survey conducted in October, while 16.1 percent said their businesses deteriorated, down from 23.0 percent.

The think tank said the chemical, steel, machinery, transportation, tools, and electronics industries expressed optimism in November.

In addition, 32.5 percent of the respondents said they expected their businesses to improve over the next six months, up from 25.9 percent in a similar survey conducted in October, while 16.7 percent said they anticipated their business will deteriorate, down from 18.4 percent the previous month, TIER said.

Chang said that while the COVID-19 pandemic continues, the presence of vaccines has restored faith in the global economy to some extent, adding that it is possible the momentum of the economic fundamentals worldwide will accelerate in the second quarter of next year.

TIER said that despite the increase in the composite index in the service sector, the food and beverage industry remained cautious since many companies have decided not to throw their traditional year-end dinner parties for their employees because of the COVID-19 risk. Meanwhile, Liu Pei-chen (劉佩真), an economist with TIER, said the government's measures to fend off speculation in the local residential property market is expected to place transactions in consolidation mode for some time.

As a result, Liu went on, almost 55 percent of the property developers in the TIER survey said they expect the local market to deteriorate over the next six months. However, Liu said the government's efforts to fight speculation are expected to stabilize the local property market in the longer term.