Taiwan’s service sector shows significant improvement: survey

The local service sector showed significant improvement in November, flashing a "yellow-red light" that signaled slight overheating, according to a survey conducted by the Commerce Development Research Institute (CDRI).

It was the first yellow-red light since August 2011, the CDRI said.

The institute attributed the improvement to growth in the wholesale, retail and restaurant industries, due mainly to higher demand ahead of Christmas and anniversary sales campaigns by department stores, which encouraged consumer spending, according to the CDRI.

The index of service industry (ISI) stood at 104 in November, up from 101 the previous month, flashing a yellow-red light that represents a range of 104 to 108.

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.

Source: Focus Taiwan News Channel