Taiwan: Manufacturing PMI falls in July
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) decreased from 44.8 in June to 44.1 in July. As a result, the index moved further below the 50-threshold, pointing to a faster deterioration in business conditions.
July saw sharper falls in output, new orders and new export orders relative to June. In addition, employment and purchasing activity declined, while business sentiment was the weakest since January. Moreover, input and output costs declined. Taiwan’s manufacturing sector is suffering more than that of most other economies—the JPM Global Manufacturing PMI clocked 48.8 in June, the latest month of data available. This is due to Taiwan’s reliance on electronics, international demand for which is currently depressed.
Annabel Fiddes, economics associate director at S&P Global Market Intelligence, said:
“The data […] suggest a weak performance entering the third quarter, with little sign that things will pick up in the near-term. Moreover, Taiwanese manufacturers anticipate further cuts to output in the months ahead, as softer global demand conditions are projected to remain a drag on the export-led economy.”