Taiwan: Manufacturing PMI deteriorates in February
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 54.3 in February, down from January’s 55.1. February’s result marked the worst performance since August 2020, but also the 20th consecutive month of expansion. As a result, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
The moderating value of the index stemmed from weaker growth in output and new orders. Growth in production was partially stifled by raw material shortages, longer lead times for inputs, and high inventory levels. Input and output costs also rose at elevated rates. These negative trends were partially offset by sharp growth in export sales to mainland China, Europe and the United States, while business confidence for the year ahead reached a 10-month high in February.