The government’s business climate monitor last month was “red” for the second consecutive month, suggesting a boom amid signs that the world is emerging from the COVID-19 pandemic, despite an escalation of infections in India and other countries, the National Development Council said yesterday.
The overall reading was steady at 40, while the nine constituent gauges consolidated at high levels, the council said, adding that the monitor is expected to remain red this quarter, with major economic barometers tipped to be strong.
“Taiwan’s exports still have room to move upward as they move forward with the world on track for recovery from the pandemic,” NDC research director Wu Ming-huei (吳明蕙) told a media briefing.
The council uses a five-color system to depict the nation’s economic situation, with “green” indicating steady growth, “red” suggesting a boom and “blue” signaling a recession. Dual colors indicate a transition.
Wu dismissed overheating concerns, as red reflects healthy economic fundamentals, primarily impressive corporate earnings.
That explains why the local bourse has repeatedly reached records this month, Wu said.
All of the measures rose, except non-farm payrolls, Wu said.
The index of leading indicators, which aims to portray the economic situation for the subsequent six months, increased 0.12 percent to 105.35, as readings on imports of semiconductor capital equipment, manufacturing business confidence and labor entry rates rose, the council said.
The leading index has increased for 11 months in a row, with a cumulative gain of 9.15 percent, lending support to the council’s upbeat sentiment, Wu said.
The index of coincident indicators, which reflects the current economic state, increased 0.84 percent to 105.98, while the index has risen 9.18 percent in the past 10 months, the council said.
Industrial output, manufacturing sales, imports of machinery and electrical equipment, as well as wholesale and restaurant revenue, all gained ground, it said.
Exports and domestic demand have bolstered the economy, Wu said.
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