The service sector could have shown signs of improvement last month, the Commerce Development Research Institute (CDRI, 商業發展研究院) said on Wednesday last week as it released its Index of Service Industry (ISI) report for August.
Last month’s ISI score might increase from 99 points in August to 100 points and flash “green” for the first time in 19 months, the institute said, citing an increase in exports last month, especially among suppliers providing components or services for Apple Inc’s new iPhones.
The report is to be released early next month.
The nonprofit institute uses a five-color system, coupled with the ISI, to gauge the climate of the local service sector, focusing on three areas: securities trading; the labor market and wages; and business operations.
“Red” indicates overheating, “yellow-red” a slight overheating, “green” means steady growth, “yellow-blue” sluggishness and “blue” recession.
The service sector flashed “yellow-blue” in August, signaling sluggish growth, as the ISI stood at the high end of the “yellow-blue” range between 93 points and 99 points.
The institute attributed the improvement in August largely to higher revenues in Taiwan’s wholesale sector, which returned to growth at 3.39 percent from a year earlier after posting a year-on-year 1.53 percent decline in July.
The rise in wholesale revenue in August reflected a 1.01 percent year-on-year rise in the nation’s exports during the month, the institute said.
Rising demand ahead of the Mid-Autumn Festival, which fell on Sept. 15, boosted retail trade in August and helped offset the effects of a decline in the number of Chinese visitors to Taiwan, the institute said.
While employers asked employees to work more overtime to meet rising demand during the peak season in August, average regular wages remained little changed from a month earlier, it said.
Share prices of service companies moved up on higher turnover and improving market sentiment, it added.
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