TAIPEI: The service sector could have shown signs of improvement last month, the Commerce Development Research Institute (CDRI) said on Monday last week, as it released its index of service industry (ISI) report for April.
Last month’s ISI score might increase to 96 points from 95 points in April and the figure for this month could climb further to 99 points, the institute said, citing peak months for wholesale businesses.
Other positive factors include efforts by international high-tech brands to develop virtual reality devices and the likelihood of higher Apple Inc inventories for the production of new iPhone models, the institute said.
However, the local service sector might continue to flash “yellow-blue” for last month, indicating sluggishness, the institute added.
The ISI report for last month is scheduled to be released early next month.
The non-profit institute uses a five-color system, coupled with the ISI, to describe the climate of the local service sector, focusing on three segments — securities trading, the labor market and wages, and business operations.
“Red” indicates overheating, “yellow-red” a slight overheating, “green” means steady growth, “yellow-blue” sluggishness and “blue” recession.
If the ISI for last month remained in the 93 to 99-point range, it would indicate a yellow-blue signal for the seventh consecutive month, CDRI data showed.
As for the yellow-blue light in April, the institute attributed it to the poor performance of exports, a drop in the number of Chinese tourists visiting Taiwan, and the approach of the tax season, which usually affects domestic consumption as people try to keep some cash on hand.
