Press Release
National Development Council (NDC)
August 26, 2016
In July 2016, the Taiwan Business Indicators showed some scattered signs of economic improvement. Among the indicators compiled by the National Development Council (NDC), the trend-adjusted leading index increased by 0.63%, the trend-adjusted coincident index increased by 1.04% from the previous month, and the overall monitoring indicator flashed the "green" signal.
- The Monitoring Indicators: The total score in July 2016 increased by three points to 23, flashing the “green” signal for the first month. Among the nine components, the TAIEX average closing price gained one point to change light from “yellow-blue” to “green”, the imports of machineries and electrical equipments gained one point to change light from “green” to “yellow-red”, and the sales of trade and food services gained one point to change light from “blue” to “yellow-blue”. The light signal for the rest of six components remained unchanged.
- Leading Indicators: With revised data, the trend-adjusted leading index stood at 100.14, up by 0.63% from June 2016. Among the seven indicators making up the trend-adjusted index, building permits, the TIER manufacturing sector composite indicator, the index of export orders, and TAIEX average closing price had positive cyclical movements from the previous month, while the SEMI book-to-bill ratio, real monetary aggregates M1B, and net accession rate of employees on payrolls of industry and services had negative cyclical movements.
- Coincident Indicators: With revised data, the trend-adjusted coincident index stood at 101.77, up by 1.04% from June 2016. Among the seven indicators making up the trend-adjusted index, electric power consumption, real machineries and electrical equipments imports, real customs-cleared exports, the index of producer’s shipment for manufacturing, the industrial production index, and sales of trade and food services had positive cyclical movements from the previous month, while nonagricultural employment had negative cyclical movement.
- Lagging Indicators: With revised data, the trend-adjusted lagging index stood at 97.58, down by 0.33% from June 2016. All six indicators making up the trend-adjusted index had negative cyclical movements, which were the inventories to sales ratio for manufacturing, the unemployment rate (inverted), the manufacturing unit output labor cost index, loans and investments of monetary financial institutions, regular employees on payrolls in industry and services, and the interbank overnight call-loan rate.
~~ Next publication date: September 29 2016 ~~