Taiwan’s economy remains stable in September

2014-10-29

Taiwan’s overall economic monitoring indicator flashed green for the eighth consecutive month in September, confirming the economy remains on a steady growth track, according to the National Development Council Oct. 27.

“The latest result shows Taiwan businesses are bullish on market conditions going forward given the improving global economy and anticipated heightened demand for exports,” an NDC official said.

Among the indicator’s nine components, imports of machinery and electrical equipment, as well as the manufacturing sector composite index, both dropped a point and changed from yellow-red to green.

Indicators for customs-cleared exports, monetary aggregates M1B and producers’ shipments for manufacturing remained green, while the industrial production index and stock prices continued yellow-red. But nonagricultural employment and sales of commerce flashed yellow-blue for 19 and five months in a row, respectively.

“The lackluster sales of commerce performance is most likely attributable to recent lard-based oil scandals affecting public confidence in Taiwan’s food safety,” the official said.

Although the composite score fell two points to 27, it remains in the stable zone. And while the leading indicator continued to drop, this was offset by the steadily rising coincident indicator with an expanding margin.

On the domestic front, continuous expansion in the aviation sector and telecommunications infrastructure is expected to drive up investment, while consumer consumption buoyed by higher wages and the upcoming shopping season will provide additional economic momentum.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=223341&CtNode=413)