Press Release
National Development Council (NDC)
August 27, 2014
In July 2014, the Taiwan Business Indicators showed that the domestic economy continued its steady growth. Among the indicators compiled by the National Development Council (NDC), the trend-adjusted leading index decreased by 0.12%, the trend-adjusted coincident index increased by 0.27% from the previous month, and the overall monitoring indicator flashed the "green" signal for the sixth consecutive month.
1. Leading Indicators: With revised data, the composite leading index stood at 104.94, up by 0.05% from June 2014. Its trend-adjusted index decreased by 0.12% to 100.14. Among the seven indicators making up the trend-adjusted index, TAIEX average closing price, the TIER manufacturing sector composite indicator, SEMI book-to-bill ratio, and real monetary aggregates M1B had positive cyclical movements from the previous month, while net accession rate of employees on payrolls of industry and services, the index of export orders, and building permits had negative cyclical movements.
2. Coincident Indicators: With revised data, the coincident index stood at 106.29, up by 0.43% from June 2014. Its trend-adjusted index increased by 0.27% to 101.44. Among the seven indicators making up the trend-adjusted index, the industrial production index, the index of producer’s shipment for manufacturing, real customs-cleared exports, electric power consumption, and real machineries and electrical equipments imports had positive cyclical movements from the previous month, while nonagricultural employment and sales of trade and food services had negative cyclical movements.
3. Lagging Indicators: With revised data, the lagging index stood at 105.18, up by 0.84% from June 2014. Its trend-adjusted index increased by 0.67% to 100.38. Among the six indicators making up the trend-adjusted index, the manufacturing unit output labor cost index, the unemployment rate (inverted), and loans and investments of monetary financial institutions had positive cyclical movements from the previous month, while the inventories to sales ratio for manufacturing, the interbank overnight call-loan rate, and regular employees on payrolls in industry and services had negative cyclical movements.
4. The Monitoring Indicators: The total score in July 2014 increased by one point to 27, flashing the “green” signal for the sixth month. Among the nine components, the customs-cleared exports gained one point to change its individual light signal form “yellow-blue” to “green”. The light signal for the rest of eight components remained unchanged.
~~ The next release is scheduled for September 26 2014 ~~