Taiwan’s overall economic monitoring indicator flashed a transitional yellow-blue for the first time in 10 months, pointing to an economic recovery, the Council for Economic Planning and Development said Oct. 26.
The composite score advanced seven points to 22 in September, up from a sluggish blue and just one point away from a green light representing stability, according to the CEPD.
Among the nine components that make up the indicator, the indexes for stock prices, industrial production and nonagricultural employment all advanced one point to move from yellow-blue to green. Customs-cleared exports surged three points from blue to yellow-red, just below the booming red light, while manufacturing, along with wholesale, retail and food, gained one point to move to yellow-blue.
The monetary aggregate M1B—defined as currency in circulation plus checking accounts, passbook deposits and passbook savings deposits—and the index for direct and indirect finance remained yellow-blue.
Machinery and electrical equipment fell one point to a blue light, the only index to decline for the month.
The CEPD expressed cautious optimism looking forward. Although the eurozone crisis is moving in a positive direction, risks remain high. The U.S. still faces the possibility of a fiscal cliff, a large reduction in the budget deficit coupled with recession related to scheduled spending cuts and tax increases, while mainland China and other emerging economies have yet to pick up steam.