Taiwan: Manufacturing PMI dips in November
December 1, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell from 55.2 in October to 54.9 in November. The index remained entrenched above the 50-threshold, but signaled a slower improvement in business conditions from the previous month.
November’s reading was driven by a fall in output and slower new orders growth, amid supply constraints and input shortages. In contrast, employment rose at a faster pace. On the price front, both input and output price inflation was the fastest in five months. Meanwhile, business confidence improved slightly in November.
On the outlook, Annabel Fiddes, economics associate director at IHS Markit, commented:
“Difficulties obtaining key inputs and a further substantial deterioration in suppliers' delivery times prompted firms to stock build and increase their staffing levels again. However, it seems unlikely that production schedules can recover quickly unless there is an improvement in supply chains and faster delivery of key components.”
Author: Oliver Reynolds, Economist