Taiwan: Growth in manufacturing production softens again in February
March 1, 2017
Growth in the Taiwanese manufacturing sector softened for a second time in February, following seven consecutive months of improvement. The Manufacturing Purchasing Managers’ Index (PMI), reported by Nikkei and IHS Markit, edged down from 55.6 in January to 54.5 in February—the lowest since October. Despite the fall, the indicator continues to rest comfortably above the 50-point threshold, which indicates that the sector’s growth is still solid.
According to IHS Markit, Taiwan’s goods producers signaled a slower increase in new orders, production and employment creation in February. Conversely, a higher intake of new businesses prompted manufacturers to increase their purchasing activity. In addition, rising demand for inputs increased pressure on suppliers, which caused a sharp increase in delivery times. In terms of prices, manufacturers saw input prices increasing again in February, which led to a further increase in their selling prices to protect their margins.
Author: Ricardo Aceves, Senior Economist