Taiwan’s overall economic monitoring indicator flashed a stable green in January, bolstered by increasing manufacturing activity and machinery and electrical equipment imports, according to the National Development Council March 5.
The composite score for the business indicator gained one point to 23, returning to green after a 10-month run was broken in December 2014. Among the monitoring indicator’s nine components, producer’s shipment for manufacturing, as well as imports of machinery and electrical equipment, rose one point to stable from transitional yellow-blue.
Sales of trade and food services lost one point and switched from a yellow-blue to a sluggish blue. Industrial production, monetary aggregates M1B, TAIEX average closing price and the Manufacturing Sector Composite Index continued green, while nonagricultural employment and customs-cleared exports remained yellow-blue.
Wu Ming-huei, director of NDC Department of Economic Development, attributed the weak showing of sales of trade and food services to a seasonal effect and safety concerns stemming from the avian flu. “This temporary dip will not have a long-term impact on Taiwan’s overall economy,” she said.
According to Wu, the NDC forecasts a strong showing for Taiwan’s economy this year on the back of rebounding global conditions and rising private consumption spurred by the strengthening local job market and weak global oil prices.
“Resilient demand for mobile communication devices, along with new applications for the Internet of Things and big data, will bolster sectorwide investment and create more opportunities for Taiwan’s exporters,” she added. (SFC-JSM)
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