Taipei, Oct. 29, 2012 (CENS)--Following 10 consecutive months of sluggish blue light, the Cabinet-level Council for Economic Planning and Development (CEPD) flashed a transitional yellow-blue light for Taiwan's economic status in September and the composite index of monitoring indicators jumped seven points to 22 in the month, just one point below the green-light level representing business stability.
However, the recovery appears to be shaky, as the composite index of leading indicators, a barometer of business performance several months ahead, declined in September, for the fifth month in a row, and exports in the first two weeks of October dropped conspicuously.
The upgrading of the economic signal to the yellow-blue light level and the remarkable increase in the index of monitoring indicators in September is attributed mainly to slight improvement in employment and upturn in the aspects of finance, production, trade, and consumption.
Export performance jumped from blue light in August to yellow-red light in September, contributing three points to the seven-point increase in the index of monitoring indicators. Other factors, including stock price, industrial output, non-agricultural employment, sales of the manufacturing industry, and retail/wholesale/restaurant each contributed one point to the index of monitoring indicators but the import value of machinery and electric equipment subtracted one point.
Hung Jui-bin, director of the economic research department, the CEPD, expressed that the performance of the index of monitoring indicators in September is better than expectation, cautioning, though, there still exist some potential risks in the mid- and long-term global economy and the confidence of local people in business prospects is still insufficient.
Hung noted that the Taiwanese economy will recover in a gradual manner, different from the “V-type” upturn following the global financial tsunami in 2009.
(by Philip Liu)
