Taipei, July 3, (CENS)--Although Taiwan`s economic indicator flashed consecutive blue in May, yet the annualized 6-month change in the composite leading index turned positive for the first time in 16 months to 3.5%, implying the end of economic contraction, according to the Council for Economic Planning and Development (CEPD).

In the same month the coincident indicator, used to assess economic climate in a given month, showed the fourth consecutive rise to 2.8%, despite the percentage being minus 23.2% in January of the year.

Thanks to the rallying stock market and sharp annual growth in the money supply-M1B, the composite scores in May gained one more point to 12, the highest in seven months.

Hu Chung-yin, deputy chairman of CEPD, indicated that currently Taiwan`s economy is slowly regaining strength, but has not recovered yet. He emphasized that the graph of the economic recovery is "U" shaped not "V," and predicted the island`s economy would not start to recover until the fourth quarter of this year or the first quarter of next year.


(by Judy Li)