Wed, Jul 28, 2004 - Page 10 News List

Planners say economy slowed in June

AFP , TAIPEI

The nation's economy slowed slightly in June after showing signs of definite overheating for the first time in nearly 10 years in May, the top economic planning body said yesterday.

The index of leading indicators for June stood at 108.2 points, down 1.5 percent from May, the Council for Economic Planning and Development said.

The total score of monitored indicators slipped to 36 points in June from 39 in May to come in at the "yellow-red light" level, pointing to a slight overheating of the economy. In May, the indicators flashed the first red-light reading since December 1994.

The council uses a five-level spectrum to gauge domestic economic health. The main index -- comprising seven indicators including wholesale prices and export orders received by the manufacturing industry -- is designed to measure Taiwan's economic activity three months in advance.

The June index of coincident indicators, which coincides with the current pace of economic activity, fell 0.9 percent month-on-month to 111.9 points, it said.

The council has said economic growth will continue in the second half but that this rate is unlikely to match that of the first half. Academia Sinica, the Chung-Hua Institution for Economic Research (中經院) and the Taiwan Institute of Economic Research (台經院) all have recently predicted an economic slowdown beginning in the year's second half.

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