The government’s business climate monitor last month flashed “green” for a second consecutive month, as the nation’s economy grew steadily on the back of robust export demand, the National Development Council (NDC) said yesterday.
Major economic barometers, such as industrial production, manufacturing sales and business sentiment increased, raising the total score one point to 27, the council said.
The council uses a five-color system to portray the nation’s economic state, with “green” indicating steady growth, “red” suggesting overheating and “blue” signaling a recession. Dual colors mean it is in transition.
Photo: CNA
Exports might be boosted further with the release of new consumer electronics by global technology titans ahead of the holiday season next month and in December, council research director Wu Ming-huei (吳明蕙) said, referring mainly to Apple Inc’s new iPhones.
Taiwanese companies supply chips, camera lenses, casings, battery packs and other components for the popular mobile phones.
Domestically, wholesale and retail operators, as well as food and beverage providers, all reported a significant upturn in business, bolstered by national holidays and the government’s Triple Stimulus Vouchers, which were used to boost consumer spending, the council said.
The gauges on exports and imports of capital equipment shed amounts attributable chiefly to the appreciation of the New Taiwan dollar and fewer working days, Wu said, adding they should not be taken as signs of losses of momentum.
Exports posted a strong showing in US dollar terms, but the council calculates the nation’s economic data using the NT dollar, she said.
Foreign exchange has become less of a threat to companies with a lead in technology that are prepared for financial volatility, the council said.
The series of leading indicators, used to predict the economic outlook in the coming six months, rose 1.63 percent to 105.77, backed by better export orders, manufacturing sentiment and labor accession rates, as well as new construction floor space, the council said.
Only the reading on real imports of semiconductor equipment registered a negative cyclical movement from a month earlier, it said.
The leading indicators have accumulated a 7.35 percent increase over the past six months, affirming that the recovery is stable, Wu said.
“Invest in Taiwan” programs would continue to lend support, she added.
The council said that the index of coincident indicators, which reflects the current economic situation, rose 1.12 percent to 102.39, gaining for the fourth consecutive month.
Apart from strong retail and wholesale revenues, power consumption and manufacturing sales data were also encouraging, it said.
The council would be on the lookout for downside risks linked to the COVID-19 pandemic and the US presidential election, it added.
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