TAIPEI (Taiwan News) — Taiwan’s economic growth signal remained green in June, even as the monitoring score fell to its lowest point since late 2022, according to a National Development Council report released Monday.

The NDC’s composite economic index dropped to 29 points, down two from May and marking an 18-month low, per CNA. Despite the decline, the green light signal held for the second consecutive month, indicating continued economic expansion.

Of the nine key indicators, two weakened in June: overtime hours and revenue from the wholesale, retail, and food service sectors. Each sub-index dragged the overall score down by one point. The remaining seven indicators stayed unchanged, suggesting overall resilience across sectors.

NDC Department of Economic Development Deputy Director Chen Mei-chu (陳美菊) attributed the decline in revenue to a drop in car imports, while noting that slower restocking activity signaled growing caution amid tariff concerns. However, industrial production and high-tech equipment imports remained solid, helping to sustain economic momentum.

With the US set to implement new tariffs on Aug. 1, Taiwan has yet to finalize its reciprocal response. Chen said Taiwan’s final tariff rate—especially given Japan and the EU’s lower deals—will be a key factor influencing the second half of the year.

Despite trade-related uncertainty, AI remains a bright spot. Chen cited strong global demand for high-end servers and chips, along with TSMC’s upcoming ramp-up of its 2-nanometer process, as major drivers of export growth.

She acknowledged that some traditional sectors are showing signs of fatigue but said AI remains an anchor for Taiwan’s economic performance. If global conditions remain stable and AI investment continues, the green signal could be maintained, she added.