Taiwan’s economy slowed in April

Overall, the “economic performance composite index” compiled monthly by the CEPD dropped five points. The decline is indicated by a yellow-blue signal.

However, CEPD is still optimistic about the economy’s overall performance for the year, saying it will stick to the 4.38 percent growth for the year as forecasted by the Directorate General of Budget, Accounting and Statistics.

The CEPD gave the above information during a news conference yesterday afternoon, moderated by the agency’s director of research Hung, Jui-pin.

The economic performance composite index in April was 18, a drop of five points from March’s 23, Hung said. The composite index is made up of several leading indicators and coincident indicators.

The leading indicators had a total score of 110 in April, down 0.2 percent from March’s 110.2. Of the seven indicators, only two went up, namely prices of goods and M1B. The other five, namely exports, stocks, total areas of construction, orders received by manufacturers, and total hours of working by manufacturers, went down.

The coincident indicators had a total score of 109.6, down 0.4 percent from March’s 110. Three indicators went up, namely margin of reduction of bills exchanged, sales by manufacturers, and monthly wages of manufacturers. Two went down, namely industrial output and manufacturing output.

“As you can see, in April, there was a slowdown in the growth of exports, production and stocks, and the total areas of construction declined as well,” CEPD’s Hung said. “At the same time, there was a reduction in the amount of bills exchanged. All this contributed to a slowdown of the economy in April.”

However he urged people not to worry. “This is only a monthly figure and does not reflect what will happen in the future,” he said. “For the year, we’ll still abide by the statistics bureau’s number of a 4.38 percent growth.”

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