Prospects for the nation’s service industry are set to improve on the back of increasing consumption and travel during the Lunar New Year holiday, the Commerce Development Research Institute (CDRI, 商發院) said yesterday.
“It is crucial for the service industry to continue growing and for domestic consumption to stay robust after the Lunar New Year holiday,” the non-profit institute said in its latest report.
A survey conducted by the institute from Jan. 21 to Jan. 28 showed that more than 80 percent of Taiwanese households plan to travel during the Lunar New Year holiday and are likely to spend more doing so than they did last year.
An average budget of NT$13,558 (US$458) is planned for use on domestic trips, compared with NT$82,258 for overseas tours, according to the survey.
However, the institute said potential regional currency devaluation could affect Taiwan’s economy in coming months.
The index of service industry (ISI) score remained flat at 99 points in December last year for the third consecutive month, flashing a “yellow blue” signal, the report showed.
CDRI uses a five-color spectrum to gauge market sentiment for the service industry, with “blue” signaling a weak condition; “yellow-blue” relatively weak; “green” stable; “yellow-red” relatively prosperous; and “red” prosperous.
The report showed that the stock market sub-index score also remained at 99 points in December. Rises in trading volume and share prices in the service industry being too small for the score to increase, the institute said.
Meanwhile, the employment and salary sub-index score rose one point from November to 102 points in December because of growing demand created by Christmas and New Year, it said.