Taiwan: Manufacturing conditions improve for the first time in four months in July
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, rose to 50.6 in July from 46.2 in June. As a result, the PMI moved above the neutral 50 mark, signaling the first improvement in operating conditions since March.
Behind the upturn were rallying sales as new orders saw their first increase since January and output stabilized. Client demand both domestically and abroad recovered as market conditions normalized. On the downside, employment levels continued to decline. Regarding prices, input costs increased significantly, as raw material prices continued to surge. This, in turn, forced manufacturers to raise prices charged to clients for the first time since November 2018. However, the increase was soft, in a bid to prompt sales.
Commenting on the release, Annabel Fiddes, associate director at IHS Markit, said:
“The latest PMI numbers provided hope that Taiwan’s manufacturing sector is getting back on its feet after the Covid-19 pandemic weighed heavily on the sector in prior months. Firms commented that market conditions were starting to normalise, which led to a renewed increase in sales.”