The government’s business-climate monitor last month flashed “blue,” the first recession alert since April 2016, as a slowdown in exports and industrial output spread to sales at trade and food service operators, the National Development Council (NDC) said yesterday.
“The US and China have not found solutions to their trade differences, which is unfavorable for exports,” NDC Minister Chen Mei-ling (陳美伶) said.
The government is seeking to shore up private investment and consumer spending while the trade dispute evolves, Chen said.
Photo: Lee Ya-wen, Taipei Times
The council uses a five-color system to describe the state of the economy, with “green” indicating steady growth, “red” suggesting overheating and “blue” signaling a recession. Dual-color signs indicate a transition.
The retreat is not limited to Taiwan, but is a global phenomenon, dampening sales of semiconductors, smartphones and other technology devices, Chen said.
Taiwan is home to the world’s largest contract chipmakers and chip designers, as well as manufacturers of camera lenses, casings, touch panels and other components used in mobile gadgets and Internet of Things applications.
The business climate weakened from 17 to 16, while the reading for sales of trade and food services also took a hit, the council said.
There is no need to be overly pessimistic, as the government has introduced stimulus measures, mainly subsidies for domestic travel and purchases of home appliances, Chen said.
In addition, the government has taken steps to welcome firms based in China to move manufacturing facilities back to Taiwan, she said.
The leading index series, which predicts the economic picture for the subsequent six months, shed 0.9 percent to 99.49, the council’s report showed.
Data on export orders, closing stock prices, corporate confidence and floor space in new construction showed negative cyclical movements, the report said.
The coincident index series, which reflects current economic changes, was 98.45, down 0.62 percent from a month earlier due to weaker electricity consumption, manufacturing shipments, non-farm payrolls and other readings, it said.
In related developments, the consumer confidence index for this month rebounded to 83.63, a National Central University survey showed.
The data were an improvement of 3.89 points from last month after the local stock market showed signs of stabilization along with global markets, the survey said.
The sub-index on stock investment picked up 19.3 points to 93.8 as investors regained confidence, it said.
The TAIEX gained 43.72 points, or 0.44 percent, to 10,013.33 yesterday.
The benchmark index has risen 2.94 percent so far this year, Taiwan Stock Exchange data showed.
Other constituent readings for consumer sentiment also indicated positive movements, with the exception of the gauge on the job market, the university’s survey showed.
On Jan. 22, the Directorate-General of Budget, Accounting and Statistics reported that last month the unemployment rate was 3.66 percent, down 0.04 percentage points from a month earlier, with the rate for the whole of last year down 0.05 percentage points to 3.71 percent, an 18-year low.
The government yesterday approved applications by Alphabet Inc’s Google to invest NT$27.08 billion (US$859.98 million) in Taiwan, the Ministry of Economic Affairs said in a statement. The Department of Investment Review approved two investments proposed by Google, with much of the funds to be used for data processing and electronic information supply services, as well as inventory procurement businesses in the semiconductor field, the ministry said. It marks the second consecutive year that Google has applied to increase its investment in Taiwan. Google plans to infuse NT$25.34 billion into Charter Investments Ltd (特許投資顧問) through its Singapore-based subsidiary Fructan Holdings Singapore Pte Ltd, and
Micron Technology Inc is a driving force pushing the US Congress to pass legislation that would put new export restrictions on equipment its Chinese competitors use to make their chips, according to people familiar with the matter. A US House of Representatives panel yesterday was to vote on the “MATCH Act,” a bill designed to close gaps in restrictions on chipmaking equipment. It would also pressure foreign companies that sell equipment to Chinese chipmaking facilities to align with export curbs on US companies like Lam Research Corp and Applied Materials Inc. The bill targets facilities operated by China’s ChangXin Memory Technologies Inc
Singapore-based ride-hailing and delivery giant Grab Holdings’ planned acquisition of Foodpanda’s Taiwan operations has yet to enter the formal review stage, as regulators await supplementary documents, the Fair Trade Commission (FTC) said yesterday. Acting FTC Chairman Chen Chih-min (陳志民) told the legislature’s Economics Committee that although Grab submitted its application on March 27, the case has not been officially accepted because required materials remain incomplete. Once the filing is finalized, the FTC would launch a formal probe into the deal, focusing on issues such as cross-shareholding and potential restrictions on market competition, Chen told lawmakers. Grab last month announced that it would acquire
Alphabet Inc CEO Sundar Pichai is deepening a push into enterprise software, signaling to investors at Google’s annual cloud conference that artificial intelligence (AI) agents — human-like digital assistants — are a lynchpin of its strategy to monetize AI. At the three-day conference in Las Vegas that started yesterday, Pichai and key Google executives aim to position the company’s AI tools as production-ready infrastructure for enterprise customers who are emerging as the industry’s most reliable revenue stream. Mountain View, California-based Google yesterday announced that it was unifying a set of AI products under the name “Gemini Enterprise.” Most notably, that involves rebranding and
RSS