Taiwan: Manufacturing PMI remains depressed in December
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) ticked up from 41.6 in November to 44.6 in December. As a result, the index was below the 50 threshold but pointed to a softer deterioration in business conditions.
In December, new orders, new export orders and output fell at softer—yet still sharp—rates, while purchasing activity and inventories declined. Business confidence remained deep in negative territory. While input costs rose, firms cut output charges in a bid to secure sales.
Annabel Fiddes, economics associate director at S&P Global Market Intelligence, said:
“There were widespread reports of weaker demand both at home and overseas, with firms commenting on reduced demand across Europe, mainland China and the US in particular. […] Business confidence stayed firmly in negative territory, as manufacturers anticipate further cuts to output in the months ahead. This seems increasingly likely if signs of spare capacity persist and global demand conditions fail to recover.”