TAIPEI — Taiwan’s economy exhibited signs of further growth in October but at a more moderate pace, as indicators reflecting future economic activity declined, the latest composite economic indicators released yesterday by the government showed.
In October, the composite economic indicator compiled by the Council for Economic Planning and Development (CEPD) fell to 34 points from September’s 37 points, and flashed a “yellow-red” light.
The local economy has given a yellow-red light for the second consecutive month, the CEPD said. In August, the economy was in the “red” light area, indicating it was overheating.
The planning agency uses a five-color system to gauge the country’s economic performance for any given month.
Blue implies a sluggish economy, yellow-blue represents a slowdown, green indicates a stable economy, yellow-red means the economy is mildly overheated, and red signifies overheating.
Despite the fall in the composite index, however, the CEPD said the local economy was still growing at a steady pace, with the labor market continuing to improve.
Among the sub-indexes of the composite indicator, money supply, share prices, employment in the non-farm sector, exports, and mechanical and electrical equipment imports fell.
The sub-indexes related to the rate of change in direct and indirect financing, industrial production, retail sales and manufacturing sales rose.
The leading index, which gauges economic performance over three to six months, measured 117.2, representing a fall of 0.4 percent from September. It was the fifth consecutive month the index fell.
The year-on-year six-month rate of change stood at 0.3 percent, down 1.8 percentage points from September.
The October index of coincident indicators,which reflect economic activity in the period measured, rose 0.5 percent from September to 124.0.
“While the leading indicator fell, the decline was limited, “ the CEPD said. “The council remains optimistic that the local economy is expected to continue to expand steadily next year.”