Taiwan Business Indicators in July 2011
Press Release
Council for Economic Planning and Development
August 26, 2011
In July 2011, Taiwan Business Indicators indicated that the economy has been on the downgrade but remain moderate growth. Among the indicators compiled by the Cabinet’s Council for Economic Planning and Development (CEPD), the annualized six-month rate of change of leading index decreased by 0.4 points, the trend-adjusted coincident index decreased by 1.2% from the previous month, and the overall monitoring indicator flashed the "green" signal.
1. Leading Indicators: With revised data, the composite leading index stood at 128.4, up by 0.04% from June. Its annualized six-month rate of change decreased by 0.4 points to 2.1%. All seven indicators making up the trend-adjusted index had negative cyclical movements from previous month, which were average monthly overtime in industry and services, index of producer's inventory for manufacturing (inverted), index of export orders, building permits, real monetary aggregates M1B, stock price index, and SEMI book-to-bill ratio.
2. Coincident Indicators: With revised data, the coincident index stood at 133.5, down by 0.2% from June. Its trend-adjusted index decreased by 1.2% to 99.1. Among the seven indicators making up the trend-adjusted index, the industrial production index, index of producer’s shipment for manufacturing, real machineries and electrical equipments imports, electric power consumption, real customs-cleared exports, and the sales index of wholesale, retail and food services had negative cyclical movements from previous month. Nonagricultural employment had positive cyclical movements from previous month.
3. Lagging Indicators: With revised data, the lagging index stood at 149.0, up by 2.6% from June. Its trend-adjusted index rose by 1.5% to 110.6. All six indicators making up the trend-adjusted index had positive cyclical movements from previous month, which were the manufacturing unit output labor cost index, inventories to sales ratio for manufacturing, regular employees on payrolls in industry and services, interbank overnight call-loan rate, loans and investments of major financial institutions, and unemployment rate (inverted).
4. The Monitoring Indicators: The total score in July was down by 1 point to 24. The overall light signal flashed the "green" signal for the fifth consecutive month. Among the nine components, industrial production index, customs-cleared exports, manufacturing sales each gained one point and changed their individual light signals. Direct and indirect finance, nonagricultural employment, imports of machineries and electrical equipments, sales index of wholesale, retail and food services each lost one point and changed their individual light signals. The light signals for the rest of two components remained unchanged.
~~ The next release is scheduled for September 27 2011 ~~