Economic indicator continues improving in Taiwan

2014-07-31

Taiwan’s overall economic monitoring indicator flashed green for the fifth consecutive month in June, indicating that the economy is continuing to pick up steam, according to the National Development Council July 28.

Among the indicator’s nine components, which produced a composite score of 26 up two points from the month before, the TAIEX average closing price was the top performer. It flashed a transitional yellow-red light and reflects a robust outlook for the country’s bourse.

Positive sentiment toward the local economy was also reflected in the machinery and electrical equipment imports subindex, with its signal changing from yellow-blue to green.

The light signals for customs-cleared exports, industrial production, manufacturing sales, monetary aggregates M1B, nonagricultural employment and sales of trade and food services remain unchanged.

The NDC is cautiously optimistic about Taiwan’s growth prospects, stating that the improving global economy will continue driving Taiwan’s exports while boosting private consumption and investment.

But the council warned of looming uncertainties such as decelerating growth in emerging markets and regional political risks that might lead to oil price fluctuations.

Separately, Taoyuan County-based National Central University released its July Consumer Confidence Index, which hit a record high of 88.17, up 0.59 of a point from a month ago.

The outlook for the local economy registered the best performance, followed by willingness to purchase durable goods, household finances and employment outlook. Timing of stock investments and consumer prices were the only two subindexes showing a decline.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=220131&CtNode=413)