Economic indicator signals slowdown
The National Development Council’s (NDC, ) overall economic monitoring indicator rose two points to 18 last month, flashing yellow-blue to signal a slowdown.
The council uses a five-color system to signal national economic health. Red warns of overheating and yellow-red of slight overheating. Green, yellow-blue and blue signal steady growth, slowdown and recession, respectively.
The NDC’s light indicator in April was blue and a slight gain in May took it to yellow-blue for a slowdown.
The rise in May’s indicator score was due mainly to the pickup in machineries and electrical equipment imports and a return of the light indicator for monetary aggregates M1B to green, according to Wu Minghuei ( ), director of the NDC's Economic Development Department.
Wu said that she sees a gradual economic recovery for Tai-
wan in the second half of 2015.
The NDC bases its overall economic monitoring indicator on nine components.
In May, the sub-indices for monetary aggregates M1B and the imports of machineries and electrical equipment each gained one point to go from yellow-blue to green.
Meanwhile, the indices for producer’s shipment for manufacturing and industrial production gained one and lost one point, respectively, while indices for the five other components remained unchanged, according to the NDC report.
The council’s overall score of 18 is calculated based on its leading index — a forecast for the next three to six months — and the coincident index, which signals the current economic conditions.
In May, the NDC’s trend-adjusted leading index fell by 0.41 percentage points from April to stand at 98.07, according to the NDC report. The index of coincident indicators stood at 98.54 in May, down by 0.72 percentage points from April.