The local service sector improved in October, flashing a “green light” that signaled stable growth, according to a survey conducted by the Commerce Development Research Institute (CDRI,商發院).
It was the first green light after 19 consecutive months of a “yellow-blue” light that represented a slowdown, said the CDRI, one of Taiwan’s leading think tanks.
The improvement in the local service sector was attributed to a comparatively higher number of holidays in October, anniversary sales campaigns by department stores, and promotional efforts by online vendors, which encouraged consumer spending, according to the CDRI.
The index of service industry (ISI) stood at 101 points in October, up from 97 in the previous month, flashing a green light that represents a range of 100 to 103.
The October score beat the CDRI’s earlier estimate of 99 points and marked the first time since February 2015 that the ISI breached 100 points.
The CDRI uses a five-color coded system, in conjunction with the ISI, to describe the climate of Taiwan’s service sector, focusing on three major segments — securities trading, business operations, and the labor market and wages.
Red signals overheating, yellow-red indicates slight overheating, green represents steady growth, yellow-blue signals sluggishness and blue indicates recession.
As for the local labor market, the sub-index rose in October to 100 points from 99 in September as the average work hours significantly increased because of the promotional sales campaigns by retailers, the CDRI said.
In October, the sub-index for business operations also increased to 97 points from 94 the previous month as the leasing, retail/wholesale, and technology service industries posted higher revenues, the think tank said.
An increase in power consumption, cargo deliveries by land and air, and the number of flights handled by airports also helped boost business operations, the CDRI said.
However, the sub-index for securities trading fell to 98 points in October from 99 in the previous month due to reduced equity turnover, the CDRI said.
Source: Focus Taiwan News Channel