Taiwan Business Indicators in October 2008
Press Release
Council for Economic Planning and Development
November 27, 2008
In October 2008, Taiwan’s business cyclical indicators suggest further weakening in economic conditions going forward. Among the indicators compiled by the Cabinet’s Council for Economic Planning and Development (CEPD), despite the leading index increased 0.7 point, the trend-adjusted coincident index decreased 3.2% from the previous month and the overall monitoring indicator still signaled "blue".
1. Leading Indicators: The composite leading index stood at 104.0, remaining at the same level of September. Its annualized six-month rate of change increased by 0.7 point to -5.6%, following eleven consecutive monthly declines. The leading index increased as SEMI book-to-bill ratio showed large improvement. However, most leading indicators contributed negatively to the index, led by large decline in stock price index, index of export orders and average monthly overtime in industry and services.
(Note: components marked with an asterisk indicate real terms)
2. Coincident Indicators: The coincident index stood at 102.7, down by 2.8% from September. Its trend-adjusted index decreased by 3.2% to 90.6, with sliding for eighth consecutive month. All coincident indicators contributed negatively to the index, led by large decline in industrial production index, real manufacturing sales*, and real customs-cleared exports*.
3. The Monitoring Indicators: The total score recorded 12 in October, remaining at the same level of September. The overall light signal was "Blue". Among the nine components, nonagricultural employment gained one point and changed the light signal from "yellow-blue" to "green". Imports of machineries, electrical equipments lost one point and changed the light signal from "yellow-blue" to "blue". The light signals for money supply M1B, direct and indirect finance, stock price index, industrial production index, customs-cleared exports, manufacturing sales and sales index of wholesale, retail and food services remained unchanged.
T~~ The next release is scheduled for December 26, 2008 ~~T