Taiwan Business Indicators in June 2011
Council for Economic Planning and Development
July 27, 2011
In June 2011, Taiwan Business Indicators indicated that the economy continued its steady 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 0.1 points, the trend-adjusted coincident index decreased by 1.0% 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 128.8, up by 0.2% from May. Its annualized six-month rate of change decreased by 0.1 points to 3.2%. Among the seven indicators making up the trend-adjusted index, index of export orders, index of producer's inventory for manufacturing (inverted), real monetary aggregates M1B, average monthly overtime in industry and services, building permits, and stock price index had negative cyclical movements from previous month. SEMI book-to-bill ratio had positive cyclical movements from previous month.
2. Coincident Indicators: With revised data, the coincident index stood at 134.97, up by 0.01% from May. Its trend-adjusted index decreased by 1.0% to 100.6. Among the seven indicators making up the trend-adjusted index, the industrial production index, index of producer’s shipment for manufacturing, real customs-cleared exports, the sales index of wholesale, retail and food services, real machineries and electrical equipments imports, and electric power consumption 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 148.2, up by 2.8% from May. Its trend-adjusted index rose by 1.7% to 110.5. 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, unemployment rate (inverted), regular employees on payrolls in industry and services, interbank overnight call-loan rate and loans, and investments of major financial institutions.
4. The Monitoring Indicators: The total score in June was down by 1 point to 26. The overall light signal flashed the "green" signal for the fourth consecutive month. Among the nine components, industrial production index and imports of machineries, electrical equipments each lost one point and changed their individual light signals, manufacturing sales gained one point and changed its individual light signal from "yellow- blue " to "green". The light signals for the rest of six components remained unchanged.
~~ The next release is scheduled for August 26 2011 ~~