Taiwan PMI December 2017

Taiwan

Taiwan: Manufacturing activity reaches over six-year high in December

January 2, 2018

Manufacturing activity expanded at the fastest pace in over six years once again in December. The manufacturing Purchasing Managers’ Index (PMI), reported by Nikkei and IHS Markit, rose from 56.3 in November to 56.6 in December, the highest figure since April 2011. As a result, the PMI sits further above the 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has now been for a year and a half.

The improvement in operating conditions was mainly supported by a sharp and broad-based increase in new orders, including export sales. This drove output growth to reach a nine-month high, and in turn, prompted Taiwanese manufacturers to increase payrolls at the fastest rate in a year. Higher output volumes also led firms to expand their purchasing activity, though at a more moderate pace than in November. Despite higher workforce numbers, backlogs of work continued accumulating at a robust pace. Forecasts indicating a continued rise in client demand further strengthened business confidence, driving it to an eight-month high.

Strong demand for inputs strained supply chains, which led to a marked increase in average delivery times as some vendors experienced inventory shortages. High demand also pushed up average input costs at a faster rate, the sharpest acceleration since February. Higher oil and steel prices, in particular, fed the overall increase in costs, and companies, in turn, passed these higher costs on to their customers.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 2.9% this year, which is unchanged from last month’s forecast. For 2018, participants expect investment to increase 2.4%.


Author:, Economist

Sample Report

Looking for forecasts related to PMI in Taiwan? Download a sample report now.

Download

Taiwan PMI Chart


Taiwan PMI December 2017

Note: Nikkei Taiwan Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Nikkei and IHS Markit.


Taiwan Economic News

  • Taiwan: Growth accelerates in Q4 2019

    February 12, 2020

    The economy expanded 3.3% in the fourth quarter compared to the same quarter a year earlier, according to a second GDP release.

    Read more

  • Taiwan: Exports and imports slump in January, trade surplus widens

    February 7, 2020

    Merchandise exports slumped 7.6% in annual terms in January, contrasting December’s 4.0% expansion.

    Read more

  • Taiwan: Inflation jumps to 21-month high in first month of the year

    February 6, 2020

    Consumer prices increased 0.59% in January compared with the previous month, accelerating from December ’s revised 0.06% increase (previously reported: +0.04%).

    Read more

  • Taiwan: Manufacturing PMI rises to 17-month high in January

    February 3, 2020

    The manufacturing Purchasing Managers’ Index (PMI), reported by IHS Markit, climbed to 51.8 in January from 50.8 in December, thus moving further above the 50-threshold and signaling the fastest pace of improvement in operating conditions since August 2018. The improvement came amid stronger growth of both output and new work received by manufacturers, while export sales returned to expansionary territory for the first time in 17 months.

    Read more

  • Taiwan: Industrial production soars in December

    January 22, 2020

    Industrial output increased 6.0% in December compared to the same month a year earlier, quickening from the 1.8% increase recorded in November. The acceleration in December was chiefly driven by strong output growth in the manufacturing sector, which represents more than 90% of total industrial production, while a return to expansion in electricity and gas supply supported the overall figure.

    Read more

More news

Search form