National Development Council

Taiwan Business Indicators in July 2017

In July 2017, the overall monitoring indicator flashed “yellow-blue” signal. The total score stood at 22. The trend-adjusted leading index increased while the coincident index decreased from the previous month. The government will be closely monitoring the economic situation.

1. The Monitoring Indicators: The total score in June was adjusted upward by one point to 22, following the revision of the TIER manufacturing sector composite indicator. The total score 22 in July, the same level of previous month, flashing the “yellow-blue” signal for the fourth month. Among the nine components remained unchanged.
2. Leading Indicators: With revised data, the trend-adjusted leading index stood at 101.08, up by 0.18% from June 2017. Among the seven indicators making up the trend-adjusted index, building permits, the index of export orders, TAIEX average closing price, and the TIER manufacturing sector composite indicator had positive cyclical movements from the previous month, while real imports of semiconductor equipment, net accession rate of employees on payrolls of industry and services, and real monetary aggregates M1B had negative cyclical movements.
3. Coincident Indicators: With revised data, the trend-adjusted coincident index stood at 100.17, down by 0.09% from June 2017. Among seven indicators making up the trend-adjusted index, real machineries and electrical equipments imports, and the industrial production index had negative cyclical movements, while real customs-cleared exports, the index of producer’s shipment for manufacturing, sales of trade and food services, electric power consumption, and nonagricultural employment had positive cyclical movements.
4. Lagging Indicators: With revised data, the trend-adjusted lagging index stood at 100.75, up by 0.37% from June 2017. Among six indicators making up the trend-adjusted index, the manufacturing unit output labor cost index, employees on payrolls in industry and services, the unemployment rate (inverted), the interbank overnight call-loan rate, and loans and investments of monetary financial institutions had positive cyclical movements, while the inventories to sales ratio for manufacturing had negative cyclical movement.

 Next publication date: September 27 2017