Taiwan PMI August 2021

Taiwan

Taiwan: Manufacturing PMI deteriorates in August

September 1, 2021

The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell to 58.5 in August from July's 59.7. As a result, the index remained entrenched above the 50-threshold, but signaled a softer improvement in business conditions from the previous month.

The lower reading was due largely to slower output growth, linked to material shortages and supplier delays, with backlogs of work rising as a result. New orders and new exports growth also ebbed, with the latter driven by the worsening pandemic abroad. Input and output price pressures were elevated, but both slipped compared to the previous month.

On the near-term outlook, Annabel Fiddes, economics associate director at IHS Markit, commented:

"While virus cases have been brought under control in Taiwan, it will be crucial for infection rates, largely driven by the Delta variant, to decline elsewhere in order for supply chains to normalise and capacity pressures to ease. Until then, it's likely that firms will remain under intense pressure to keep up with demand and costs could rise further as a result.”

FocusEconomics Consensus Forecast panelists currently project fixed investment to expand 8.9% in 2021, which is down 0.3 percentage points from last month’s forecast. For 2022, participants see fixed investment increasing 3.8%.


Author:, Economist

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Taiwan PMI August 2021 0

Note: Taiwan Purchasing Managers’ Index (PMI). Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit.


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