Service industry index hike suggests improved consumption rates: CDRI

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By Linger Liu ,The China Post

TAIPEI, Taiwan — The Index of Service Industry (ISI) stands at 102 points and is showing a stable signal for the nation’s economy, the Commerce Development Research Institute (CDRI, 商發院) announced yesterday. The CDRI said that the indicator for January 2013 shows the economy is enjoying stable growth compared to its lackluster performance for the past 13 months.

The report applies a five-color spectrum to measure market variables for the service industry.

“Blue” represents a weak economy; “yellow-blue” a relatively weak economy; “green” means a stable economy; “yellow-red” indicates medium prosperity; and a “red” light suggests the highest level of industry prosperity, said the CDRI.

The CDRI said the ISI score was at 99 — a “yellow blue” signal — in December of 2012.

Increases in trading volume and share prices in the service industry had been too small to affect December’s score, the institute said. The January 2013 growth adds weight to an optimistic assessment for the future economy said the CDRI.

Consumer Confidence Increases The stock market subindex scored 99 points in January 2013, the CDRI said. The institute said that an improving global stock market is increasing investor confidence. The CDRI said the stock market subindex has remained flat from December of last year.

It added that the employment and salary subindex score for January is at 102 points. It remained the same as last month, said the CDRI. The institute said it shows the industry is enjoying strong demand for labor, which could imply future expansion in the job market.

The operation subindex stood at 102 for January 2013 — a 3-point rise on December of last year, said the CDRI. The institute said domestic consumption was strong during the Chinese New Year Holidays which strongly contributed to the growth of index.

The institute said the ISI’s overall improved score suggests consumers are getting more confident in the economy.

Improved commercial revenues were a strong factor behind the growth in the ISI score, said the CDRI.