Sat, Jan 27, 2007 - Page 12 News List

Economy in recession territory: report

AFP , WITH STAFF WRITER, TAIPEI

The economy slowed last month, with the index of leading indicators standing at 107.8 points, down 1.1 percent from November and putting the country in recession territory, the government said yesterday.

In November, the index had registered a 0.1 percent month-on-month fall, the Council for Economic Planning and Development (CEPD) said.

The index is used as a gauge for the economy's direction in the coming three months.

The December index of coincident indicators, which corresponds with the current pace of economic activity, fell 0.4 percent month-on-month to 109.1 points, after posting a revised 0.2 percent decrease in November, it said.

Both indices for leading and coincident indicators are based on a 2001 benchmark of 100.

The total score of monitored indicators for last month was 16 points, compared with 21 points in November.

Last month's monitoring indicators showed a "blue light," which reflects a recession, after six consecutive months of a "yellow-blue light," which signaled a slowdown.

Minister of Economic Affairs Steve Chen (陳瑞隆) said yesterday that there was no reason for concern about the "blue light" performance for a single month, and added that the government maintained a positive outlook on both private investment and private consumption this year.

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