World Economy

Taiwan Service Sector Still Stagnant

Taiwan Service Sector Still StagnantTaiwan Service Sector Still Stagnant

Taiwan’s local service sector remained weak in April, with an index pointing to a slowdown, as exports continued to falter amid slow global demand, according to the country’s Commerce Development Research Institute.

In its most recent monthly report, the think tank said the index of service industry stood at 95 points, down three points from a month earlier, flashing a “yellow-blue” light for the third consecutive month, CNA reported.

The CDRI attributed the yellow-blue light (signaling sluggishness) in April to a poor export performance, a drop in the number of Chinese tourists to Taiwan, and the approach of the tax season, which usually affects domestic consumption as people try to keep some cash in hand.

The CDRI uses a five-color coded system, coupled 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.

The CDRI said the sub-index for the securities trading factor for May fell 1 point from April to 96 points as trading volume and share prices dropped last month.

The labor market, however, rose 1 point from a month earlier to 100 on an increase in hiring and the number of working hours, while the sub-index for business operations climbed two points to 103, the CDRI said.

Looking ahead, the CDRI said the ISI is likely to increase in May and June, which usually are peak months in the wholesale business.

The think tank projected an ISI of 96 points in May and 99 points in June but the local service sector will still flash a yellow-blue light.