Services index flashes green for fourth consecutive month
August 6, 2014, 12:00 am TWN
TAIPEI--The Index of Service Industry (ISI) operated by the Taipei-based Commerce Development Research Institute (CDRI) to evaluate the development of Taiwan's service industry flashed a green light in June, indicating steady growth in the sector.
It was the fourth month in a row to receive a green light, the CDRI said in an ISI report released Tuesday. It noted that the ISI was scored at 101 points for the month, one point higher than the 100-point benchmark.
Any scores higher than 100 points signal growth, while lower scores indicate slowdown or recession.
In the CDRI-devised five-color rating system for commercial services activities, a red light means the activities are warm, yellow-red indicates the activities are warming up, green reflects steady growth, yellow-blue signals slowdown and blue represents recession.
The institute said it expects the growth to continue through July, thanks to expected summer vacation travel and consumption. However, it also cautioned that a deadly air accident in the outlying island county of Penghu and a series of fatal gas explosions in Kaohsiung in late July could affect consumer spending.
The CDRI's services index is made up of 15 sub-indices divided into three facets: stock market, manpower wages and operational conditions.
The index for the stock market increased one point to 100 points in June from the previous month, while that for manpower wages remained unchanged at 100 points.
With an increase in the number of tourist visits and summer season shopping, the index of operational conditions grew by one point to 102, thanks to significant growth in revenues for the retail and restaurant businesses, according to the CDRI report.
The CDRI is a think tank devoted to analyzing consumer behavior and industrial statistical information, and to constructing a good management environment in order to understand domestic and international trends in the service industry. It was established in October 2007 to serve as a platform for communication and support among the government, academia and industry.