Taiwan economic indicators maintain nine-month high activity streak

Taiwan's National Development Council reported that the economic cycle indicator remained in the “red light” zone for August, marking nine consecutive months of high economic activity. This streak matches the record set following the COVID-19 pandemic.

Economic growth is being driven by strong demand in both domestic and external markets, particularly fueled by the artificial intelligence (AI) and cloud computing sectors. High capital expenditure in AI has led to record-breaking exports, which reached $82.4 billion in August. Additionally, export orders exceeded $100 billion, representing a 71.4% year-on-year increase.

Key manufacturing and industrial indicators, including the industrial production index and manufacturing sales volume, have also maintained their high-activity status. While there are market concerns regarding rising US Treasury yields and potential AI deceleration, officials remain optimistic, noting that global investment in cloud services is expected to remain robust.