Taiwan’s economy remains on track in August

2014-09-30

Taiwan’s overall economic monitoring indicator flashed green for the seventh consecutive month in August, indicating the economy remains on a steady growth track, according to the National Development Council Sept. 26.

The composite score advanced two points to 29, continuing a four-month run of gains and marking the longest streak of economic stability in eight years. Although the leading indicator continued to drop, this was limited and offset by the steadily rising coincident indicator with an expanding margin.

Among the indicator’s nine components, industrial production and imports of machinery and equipment both gained a point and changed from green to yellow-red. The NDC uses five colors to measure domestic economic health: red indicates serious overheating; yellow-red, slight overheating; green, steady growth; yellow-blue, slowdown; and blue, recession.

The indicators for customs-cleared exports, monetary aggregates M1B and producers’ shipments for manufacturing remained green, while the manufacturing sector’s composite indicator and stock prices continued yellow-red.

Nonagricultural employment and sales of commerce flashed blue-green for 18 and four months in a row, respectively.

The NDC said the indicator shows Taiwan businesses are bullish on the economy going forward given the improving global economy and anticipated heightened demand for Taiwan exports.

On the domestic front, continuous expansion in telecommunications infrastructure will drive up investment, while consumer consumption buoyed by higher wages and corporate profits are also expected to provide additional economic momentum.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=222213&CtNode=413)