Taiwan Business Sentiment Rises as AI Demand Offsets Risks

Taiwan’s business sentiment improved across manufacturing, services and construction last month as resilient artificial intelligence demand helped offset geopolitical uncertainty linked to the Middle East, according to the Taiwan Institute of Economic Research.

The Taiwan business sentiment indicators showed broad-based improvement across key sectors.

TIER’s manufacturing climate gauge rose 0.93 points to 97.14, while the services index increased 0.54 points to 96.73.

The construction gauge climbed 2.6 points to 94.67, ending three consecutive months of decline.

Gordon Sun, director of TIER’s Economic Forecasting Center, said the worst effects of recent geopolitical tensions had likely passed, with AI demand continuing to support Taiwan’s technology sector, export orders, factory demand and domestic consumption.

However, TIER warned that Taiwan’s property market remains weak as tighter credit controls continue weighing on housing sentiment and transaction activity.

The Taiwan business sentiment improvement reinforces the importance of AI-driven exports in supporting the broader economy.