Taiwan’s economy remains on track in February

2015-03-31

Taiwan’s overall economic monitoring indicator continued to flash green in February, confirming the local economy remains on a steady growth track, according to the National Development Council March 27.

The composite score gained one point to 24, remaining in the stable zone for the second month. “This result shows local firms are upbeat about market conditions given the improving global economy and anticipated heightened demand for exports,” an NDC official said.

Among the indicator’s nine components, stock prices and imports of machinery and electrical equipment gained one point and changed from green to a transitional yellow-red. Sales of commerce also picked up a point and improved from the sluggish blue to yellow-blue.

Monetary aggregates M1B and producers’ shipments for manufacturing both dropped one point and changed their signals from green to yellow-blue. Signals for the other four remained the same.

According to the official, a better economic outlook for the eurozone, Japan and the U.S., as well as the booming worldwide popularity of mobile devices, will spur Taiwan’s exports.

On the domestic front, new applications of smart chips are expected to drive up investment by the semiconductor sector, while consumer consumption boosted by higher wages and lower oil prices will provide additional economic momentum.

This positive sentiment was also reflected in the Taiwan Consumer Confidence Index, which hit an all-time high in March, according to a survey released the same day by the Research Center for Taiwan Economic Development at National Central University.

The latest CCI gained 10.17 points from last year to the highest on record of 91.13. This is also the first time the benchmark rose above 90 since its launch in 2001. All six components comprising the CCI recorded rises, with the exception of durable goods purchases.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=228833&CtNode=413)