Taiwan economic indicator stays stable in July

2014-08-29

Taiwan’s overall economic monitoring indicator remained green in July, reflecting the improving condition of the local economy, according to the National Development Council Aug. 27.

Jan Fang-guan, director of the NDC Department of Economic Development, said this is the sixth month in a row the indicator has flashed the stable signal, a situation he forecast to continue for the rest of the year.

“Growth of more than 10 percent in petroleum refining production and exports of electronics and transportation equipment is the main factor for the recent gains,” Jan said.

According to the NDC, the July indicator’s composite score gained one point to 27. Eight of its nine components remained unchanged, with customs-cleared exports the only exception. Shipments rose 7.8 percent for the month, up from 2.4 percent in June, boosting the subindex to a stable green from transitional blue-yellow.

While the trend-adjusted score of the leading indicator has been falling slightly over the past five months, Jan said it is too early to say the local economy has reached its peak. “With the U.S. economy recovering and mainland China gradually stabilizing, we remain cautiously optimistic about Taiwan’s overall conditions going forward.” 

Jan said booming private consumption spurred by a thriving stock market, as well as expanding capital investment by local semiconductor firms and telecommunication services providers will also help sustain growth.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=221098&CtNode=413)