The government’s business climate monitor last month flashed “yellow-red” light for the first time in two years, as strong industrial production, increasing imports of machinery equipment, robust domestic commercial activities and stock investments boosted the momentum of local businesses, the National Development Council said yesterday.
Prior to last month, the business climate monitor had maintained a “green” signal for three consecutive months.
The council measures the nation’s economic situation using a five-color system, with “blue” signaling a recession, “green” suggesting steady growth and “red” indicating a boom. “Yellow-red” reflects a slight boom, while “yellow-blue” shows sluggishness.
Photo: CNA
The total score of the monitor’s composite index rose four points from the previous month to 35, indicating steady growth for six months in a row, the council said in a report.
Meanwhile, the index of leading indicators, which gauges the economy’s direction in the next six months, moved up by 0.5 percent month-on-month to 102.09, rising for the seventh consecutive month, it said.
The index of coincident indicators, which tracks the current pace of economic activity, climbed 0.93 percent to 102.82, increasing for the 13th consecutive month, the council said.
“Benefiting from the growing demand for artificial intelligence and other tech applications, indicators such as industrial production, machinery and electrical equipment imports have turned to flashing red. Coupled with continued advancement in the leading and coincident indicators, the domestic economy is steadily recovering,” the council said.
Of the composite index’s nine components, the subindices on imports of capital equipment and sales of retail, wholesale and food and beverage services increased by two points each and changed from “green” the previous month to “red,” the report said.
The subindex on industrial production rose by one point, going from “yellow-red” a month earlier to “red,” while the subindex on manufacturing sales increased by one point, changing from “green” to “yellow-red, it said.
However, customs-cleared exports decreased by two points and flashed “green,” compared with “red” a month prior, the report said.
There were no changes in the signals of the other four subindices, including money supply, the TAIEX, non-agricultural employment and sentiment of the manufacturing sector, the report said.
Looking ahead, the council expects exports to continue showing steady growth, on the recovery of global trade and growing opportunities linked to emerging applications related to artificial intelligence.
It also said it expects domestic investment to continue gathering steam thanks to demand for advanced technologies, digital transformation and net zero carbon emissions, in addition to government projects for public works.
Meanwhile, private consumption is expected to retain strong momentum on the back of stable employment, higher minimum wages, a vibrant stock market and more government subsidies for housing and education, it said.
“However, uncertainties such as potential interest rate cuts in major economies, continued geopolitical risks and the intensifying rivalry between the US and China still exist, and their future developments deserve close observation,” the council said.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS