Taiwan: Manufacturing PMI falls further in October
November 2, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) declined from 42.2 in September to 41.5 in October. As a result, the index pointed to a sharper deterioration in business conditions from the previous month, and marked the lowest reading since January 2009.
The fall in the index was mainly driven by faster declines in output, new orders and purchasing activity. Demand was soft at home and abroad, with demand conditions in Asia, the U.S. and Europe particularly weak. Moreover, firms grew more pessimistic, while input and output prices fell. More positively, firms continued to increase employment.
Shreeya Patel, economist at S&P Global Market Intelligence, said:
“Taiwan's economy is expected to feel the repercussions of the weak economic outlook for some time. Our projections point to growth moderating […] in Q4 2022."
Author: Oliver Reynolds, Economist