The service sector remained stable for a fifth consecutive month in July, with its index flashing a “green light,” a survey released on Friday by the Commerce Development Research Institute (CDRI, 商發院) showed.
The think tank said that the index of service industry (ISI), which assesses conditions in the service sector, stood at 101 points in July, remaining unchanged from June.
The institute uses a five-color coded system, in conjunction with the ISI, to describe the climate of the service sector, focusing on three major segments — securities trading, the labor market and wages, and business operations.
Red indicates overheating, yellow-red means slight overheating, green represents steady growth, yellow-blue signals sluggishness and blue indicates recession.
In the securities trading segment, the sub-index was 100 points in July, unchanged from June, as trading interest in the local bourse remained high, the institute said.
The sub-index in the labor market also remained flat from June at 100 points, based on the service sector’s peak period in summer, when employees worked longer hours and took home more overtime pay.
The institute said that the sub-index for the business operations factor stood unchanged at 102 points, as foreign visitor arrivals increased during the summer vacation.
Business operations were also boosted by higher consumption ahead of Lovers’ Day on Aug. 2 and the Ghost Festival on Aug. 10, the institute said.
It said the ISI for last month is expected to rise by one point to 102 points, as the nation’s economy is on the way to recovery.
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