A key gauge of Taiwan's economy declined 0.9 percent month-on-month in September because of typhoons that ripped through the nation and the Sept. 11 terrorist attacks on the US, officials said yesterday.
September's decline in the composite index of leading economic indicators was the first monthly drop in four months. It was also a sharp contrast to the revised 1.2-percent growth in August.
Taiwan's economic recovery, which was expected to begin in the fourth quarter, will probably be delayed by one to two quarters, said Hu Chung-ying (胡仲英), of the Council for Economic Planning and Development.
Although the outlook for the economy beyond the second quarter remains "foggy," Hu said the recovery will come in the third quarter at the earliest, as that is usually the peak exports season.
"However, what shape the recovery will take is still unclear at this point," said Hu, director of the council's economic research department.
The components of the leading index include stock prices, average weekly manufacturing hours, interest rates and manufacturers' new orders for consumer goods and materials.
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