Service sector flashes ‘green light’ for 5th month


CNA

TAIPEI, Taiwan — Taiwan’s service sector remained stable, with its index flashing a “green light” for the fifth consecutive month, according to a survey released Friday by the Commerce Development Research Institute (CDRI).

The local think tank said that the index of service industry (ISI), which assesses conditions in the local service sector, stood at 101 points in July, unchanged from June, and continued to flash a green light.

The CDRI uses a five-color coded system, in conjunction with the ISI, to describe the climate of the local service sector, focusing on three major segments — securities trading, the labor market and wages, and business operations.

Red signals overheating, yellow-red indicates slight overheating, green represents steady growth, yellow-blue signals sluggishness and blue indicates recession.

In the securities trading segment, the sub-index was 100 points in July, unchanged from a month earlier, as trading interest in the local bourse remained high, the think tank said.

It said the sub-index in the labor market for July also remained flat from the previous month at 100 points, based on the local service sector’s peak period in summer, when employees worked longer hours and took home more overtime pay.

The CDRI said that the sub-index for the business operations factor stood at 102 points in July, unchanged from a month earlier, as foreign arrivals in Taiwan increased during the summer vacation.

Local business operations were also boosted by higher consumption ahead of Chinese Valentine’s Day and the Ghost Festival, which fell on Aug. 2 and Aug. 10, respectively, the think tank said.