The government’s business climate monitor last month signaled “green” for a second consecutive month, a further sign the economy is in recovery despite a slow pace, the National Development Council (NDC) said yesterday.
The council’s Taiwan Business Indicators picked up two points to 25 points last month, spurred by better industrial production and overseas shipments, as global technology brands launched new-generation devices, the council’s monthly report said.
“The growth momentum could be sustained, as local firms benefit further from high-season sales, especially in tech devices, toward the end of the year,” NDC Director Wu Ming-huei (吳明蕙) said.
More firms are tapping business linked to the Internet of Things through the introduction of various Web-based applications and devices, Wu said.
However, lingering downside risks continue to cloud the landscape, Wu said, citing a number of negative factors, including the sluggish global economy, uncertainty over the US presidential election in November, and a potential interest rate hike by the US Federal Reserve in December.
A closer look at the council’s latest data indicated that the leading indicator index, which is used to forecast economic trends up to six months in the future, increased 0.82 percent to 101.16, up for six months in a row, the report said.
The TAIEX, the confidence in the manufacturing sector and salary’s all registered positive cyclical movements, the report said.
Only the semiconductor industry’s book-to-bill ratio declined compared with one month earlier, the report said.
The concurrent index, which reflects present economic conditions, increased 1.13 percent to 102.86 last month, rising for the sixth consecutive month, the report said.
Machinery and electrical equipment imports, sales of trade and food services, and customs-cleared exports, electric power consumption and other constituent indices all strengthened last month from a month earlier, the report said.
Only the index on non-agricultural employment showed downward movement, the report said.
Wu said that the graduation season did weigh on the reading and that the effects are expected to taper off soon.
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