Taiwan Service Sector Improves

Taiwan’s local service sector showed signs of improvement in March, with an index gauging the sector’s sentiment indicating that momentum accelerated in March, according to the Commerce Development Research Institute.

The CDRI, one of the leading think tanks in Taiwan, cited a survey as saying that the index of service industry (ISI) for March stood at 104, up 1 point from a month earlier, flashing a yellow-red light, which represents a range between 104 and 108. In February, the ISI flashed a green light, which ranges from 100 to 103, CNA reported.

The think tank said that the higher ISI in March largely reflected an improvement in the local job market and business operations.

The CDRI uses a five-color coded system, in conjunction with the ISI, to describe the outlook for Taiwan’s service sector, focusing on three major segments—securities trading, business operations, the labor market and wages.

Red indicates overheating, yellow-red slight overheating, green represents steady growth, yellow-blue sluggishness and blue indicates recession.

The sub-index for the business operations factor for March rose to 100 points from February’s 99 on the back of an increase in power consumption, land and air cargo volume, and the number of flights handled by airports, the CDRI said.

The CDRI added that the number of new companies set up in March topped the number of business shutdowns in the month also gave a boost to the business operations sub-index. The sub-index for the labor market rose to 104 points in March from 102 seen in February, in reflection of an increase in new hiring and the number of overtime work hours, the CDRI said.