Strong AI Demand Drives Taiwan's March Business Indicator to Fourth Consecutive 'Red Light'; NDC Optimistic About Continued Economic Stability
Taiwan's National Development Council announced that the March business indicator maintained a 'red light' for the fourth consecutive month due to strong AI demand. The economy is expected to remain stable in the second quarter.
📋 Article Processing Timeline
- 📰 Published: April 27, 2026 at 19:42
- 🔍 Collected: April 27, 2026 at 20:01 (19 min after Published)
- 🤖 AI Analyzed: April 27, 2026 at 23:39 (3h 37m after Collected)
Central News Agency
(Central News Agency reporter Zhao Min-ya, Taipei, 27th) The National Development Council (NDC) today announced that the March business indicator continued to flash a 'red light,' signifying a booming economy, for the fourth consecutive month. NDC officials stated that driven by the artificial intelligence (AI) wave, exports are expected to maintain strong growth momentum, and the economic performance in the second quarter is anticipated to remain stable. Regarding the possibility of the April business indicator continuing to show a 'red light,' officials expressed cautious optimism, noting uncertainties in traditional industries.
The NDC pointed out that the composite score for the March 2026 business monitoring indicator was 39 points, a decrease of 2 points from the previous month, with the indicator remaining a 'red light.'
Among the nine components of the business indicator, industrial and service sector overtime hours shifted to a 'yellow-red light,' decreasing by 1 point, as the impact of the Lunar New Year holiday timing faded; the manufacturing business climate survey score shifted to a 'yellow-blue light,' decreasing by 1 point; the remaining seven components remained unchanged.
Chen Mei-chu, Director of the Economic Development Department of the NDC, stated that the manufacturing business climate survey score shifting from a 'green light' (stable) to a 'yellow-blue light' (turning point) was mainly due to the impact of the Middle East situation, which pushed up international oil prices, increasing raw material costs for petrochemicals. Looking ahead to the next six months, the proportion of manufacturers optimistic about the economy decreased by 17.5 percentage points, leaning towards cautious observation.
Regarding business indicators, Chen Mei-chu noted that the leading indicator, excluding trend components, was 102.58 in March, a decrease of 0.14% from the previous month, marking two consecutive months of decline with a cumulative decrease of only 0.18%. This primarily reflects a slowdown in the export orders index, especially as traditional industries are affected by the Middle East situation and petrochemical price fluctuations, leading manufacturers to adopt a more conservative stance on receiving orders.
Chen Mei-chu explained that the coincident indicator, excluding trend components, was 109.26, an increase of 1.77% from the previous month. Major indicators such as exports, industrial production index, and machinery and equipment imports all showed increases, with only industrial and service sector overtime hours declining from the previous month after the Lunar New Year effect was removed.
Chen Mei-chu stated that AI continues to be a key driving force supporting the economy. From the development of generative AI to agentic AI, the increased consumption of tokens has boosted demand for computing power, also driving advanced processes and high-performance computing chips. She added that the AI supply chain largely relies on air transport, so it is relatively less affected by geopolitical conflicts in the Middle East, and Taiwan's control over raw materials is also good, resulting in less impact on exports. The economy is expected to remain stable in the second quarter.
Regarding whether the current economy is overheating, Chen Mei-chu believes it "should be fine." Performance varies across different industries, and traditional industries face raw material price fluctuations due to the Middle East situation, which still requires observation. As for the possibility of the April business indicator continuing to show a 'red light,' she expressed cautious optimism, as traditional industries had a high base period in April last year due to rush orders, leading to greater uncertainty.
The NDC stated that with global cloud giants continuing to advance AI infrastructure, new generation computing product shipments, and the rapid development of applications such as agentic and edge AI, exports are expected to maintain high growth. At the same time, in response to market demand, domestic semiconductor manufacturers are increasing capital expenditure, driving related supply chains to accelerate factory expansion and production line upgrades. However, the geopolitical situation in the Middle East and developments in US trade policy add uncertainty to global trade and inflation, which still requires close attention. (Editor: Yang Lan-xuan) 1150427
Choose to stand with facts; every sponsorship you provide is a force for protecting press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.
(Central News Agency reporter Zhao Min-ya, Taipei, 27th) The National Development Council (NDC) today announced that the March business indicator continued to flash a 'red light,' signifying a booming economy, for the fourth consecutive month. NDC officials stated that driven by the artificial intelligence (AI) wave, exports are expected to maintain strong growth momentum, and the economic performance in the second quarter is anticipated to remain stable. Regarding the possibility of the April business indicator continuing to show a 'red light,' officials expressed cautious optimism, noting uncertainties in traditional industries.
The NDC pointed out that the composite score for the March 2026 business monitoring indicator was 39 points, a decrease of 2 points from the previous month, with the indicator remaining a 'red light.'
Among the nine components of the business indicator, industrial and service sector overtime hours shifted to a 'yellow-red light,' decreasing by 1 point, as the impact of the Lunar New Year holiday timing faded; the manufacturing business climate survey score shifted to a 'yellow-blue light,' decreasing by 1 point; the remaining seven components remained unchanged.
Chen Mei-chu, Director of the Economic Development Department of the NDC, stated that the manufacturing business climate survey score shifting from a 'green light' (stable) to a 'yellow-blue light' (turning point) was mainly due to the impact of the Middle East situation, which pushed up international oil prices, increasing raw material costs for petrochemicals. Looking ahead to the next six months, the proportion of manufacturers optimistic about the economy decreased by 17.5 percentage points, leaning towards cautious observation.
Regarding business indicators, Chen Mei-chu noted that the leading indicator, excluding trend components, was 102.58 in March, a decrease of 0.14% from the previous month, marking two consecutive months of decline with a cumulative decrease of only 0.18%. This primarily reflects a slowdown in the export orders index, especially as traditional industries are affected by the Middle East situation and petrochemical price fluctuations, leading manufacturers to adopt a more conservative stance on receiving orders.
Chen Mei-chu explained that the coincident indicator, excluding trend components, was 109.26, an increase of 1.77% from the previous month. Major indicators such as exports, industrial production index, and machinery and equipment imports all showed increases, with only industrial and service sector overtime hours declining from the previous month after the Lunar New Year effect was removed.
Chen Mei-chu stated that AI continues to be a key driving force supporting the economy. From the development of generative AI to agentic AI, the increased consumption of tokens has boosted demand for computing power, also driving advanced processes and high-performance computing chips. She added that the AI supply chain largely relies on air transport, so it is relatively less affected by geopolitical conflicts in the Middle East, and Taiwan's control over raw materials is also good, resulting in less impact on exports. The economy is expected to remain stable in the second quarter.
Regarding whether the current economy is overheating, Chen Mei-chu believes it "should be fine." Performance varies across different industries, and traditional industries face raw material price fluctuations due to the Middle East situation, which still requires observation. As for the possibility of the April business indicator continuing to show a 'red light,' she expressed cautious optimism, as traditional industries had a high base period in April last year due to rush orders, leading to greater uncertainty.
The NDC stated that with global cloud giants continuing to advance AI infrastructure, new generation computing product shipments, and the rapid development of applications such as agentic and edge AI, exports are expected to maintain high growth. At the same time, in response to market demand, domestic semiconductor manufacturers are increasing capital expenditure, driving related supply chains to accelerate factory expansion and production line upgrades. However, the geopolitical situation in the Middle East and developments in US trade policy add uncertainty to global trade and inflation, which still requires close attention. (Editor: Yang Lan-xuan) 1150427
Choose to stand with facts; every sponsorship you provide is a force for protecting press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.