Taipei-based think tank Chung-Hua Institution for Economic Research (CIER) says that Taiwan’s manufacturing and service sectors are growing.
On Friday the CIER released July data on the Purchasing Managers’ Index (PMI) and the Non-manufacturing Index (NMI). The PMI is an indicator of the health of Taiwan’s manufacturing sector while the NMI measures the health of the service sector.
The PMI for July rose to 54.2%, a fifth month of uninterrupted growth. According to CIER’s research, this increase is largely thanks to manufacturing growth in areas such as food, textiles, electronic equipment and vehicles.
The indicator for Taiwan’s service sector, the NMI, reached 54.4% in July, a second month of growth. The CIER says that all eight major areas of the service sector saw growth. These include telecommunications, retail, and catering.
CIER director Wu Chung-shu said that both indicators show that Taiwan’s economy is recovering. He said that annual economic growth could reach 1% if the current trend of growth continues. However, Wu said that Taiwan’s exports could be hit by the lackluster recovery of the global economy.