The government’s business monitoring system showed that the economy was in a transition as different sectors reported mixed performances as trade prospects remained under a cloud and the global economy slowed, the National Development Council (NDC) said yesterday.
For the eighth consecutive month, the business climate reading was “yellow-blue” — signaling a transition between recession and growth — after flashing “blue” — indicating a sluggish economy — in December last year, the council’s data showed.
The total score for last month dipped to 20 from 22 in July, the council’s report showed.
The nine economic indices that comprise the system posted mixed performances, the council said.
Three indices — the TAIEX, industrial production, and wholesale trade, retail and food and beverage — saw their performance deteriorate compared with July, the council said.
The TAIEX fell 4 percent from a year earlier, as local investment sentiment was affected by the US-China trade dispute, while annual industrial production growth slowed to 2.3 percent last month, from 2.7 percent in July, it added.
Affected by the deterioration in export orders, wholesale trade was sluggish, falling 5.7 percent last month, it said, adding that the global trade headwinds are still one of the biggest risks for economic growth.
On the other hand, customs-cleared exports improved from July, recovering into the “green” zone, as exports expanded 6.5 percent annually after seasonal adjustments as Taiwanese companies gained more orders from customers avoiding the US tariffs on Chinese goods, the council said.
Imports of machinery and electrical equipment continued to rise, suggesting an improvement in private investment, spurred by the return of Taiwanese companies from China, it said.
“Overall, the business indicator still points to weakness, as no momentum in any single sector was strong enough to boost the whole economy,” NDC research director Wu Ming-huei (吳明蕙) told a media briefing.
While it is hard to definitely predict that business would turn better, Wu said that new mobile phone launches and 5G developments would lend support to the economy.
Separately, the consumer confidence index edged up 1.12 points to 80.86 this month, a survey by National Central University showed yesterday.
The measures on investment outlook and employment slid, as the uneconomic unease deepened, while other four subindices advanced, the survey showed.
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