Taipei, March 30 (CNA) The local manufacturing sector showed signs of stable growth in February, as the index that gauges the climate of the sector flashed a green light for the first time in three years, the Taiwan Institute of Economic Research (TIER) said Thursday.
TIER, one of the country's leading economic think tanks, said that the composite index of the local manufacturing sector rose to 13.03 points from 11.14 recorded in January, flashing a green light that indicates stable growth, an improvement from the yellow-blue light recorded for the previous four months.
TIER uses a five-color system to describe manufacturing activity, with red indicating overheating, yellow-red showing fast growth, green representing stable growth, yellow-blue signaling sluggish growth and blue reflecting a contraction.
TIER said that although the composite index for the local manufacturing sector in February stood at 13.03 points, just slightly passing the 13-point threshold for a green light, the possibility of the index being revised downward to the threshold for a yellow-blue light for the month could not be ruled out after actual production and sales figures for the month are released.
A yellow-blue light flashes when the composite index is between 10.5 points and 13 points.
The think tank said that the higher index for February largely reflected a modest recovery in the global economy, which pushed up sales of many export-oriented manufacturers in the month.
Meanwhile, Chen Tain-jy (???), head of the Cabinet's National Development Council (NDC), said that the economy might soon flash a yellow-red light, indicating a warming economy, which will help boost demand in the labor market and hike salaries.
Chen made the remarks after the economy flashed a green light in February, signaling stable growth for the eighth consecutive month.
Separate from the TIER system, the NDC uses a five-color system to gauge the country's economic situation, with blue indicating economic recession, yellow-blue representing economic sluggishness, green denoting stable growth, yellow-red referring to a warming economy, and red pointing to economic overheating.
The composite indicator for February dropped 1 point from a month earlier to 28.
A monitoring indicator score of between nine and 16 represents a blue light, while 17 to 22 indicates yellow-blue, 23 to 31 signals green, 32-37 represents yellow-red and 38 to 45 signals red.
Source: Focus Taiwan News Channel