Taiwan: Manufacturing PMI falls in May but remains elevated
June 1, 2021
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 62.0 in May from April's 62.4. As such, the index remained entrenched well above the 50-threshold, and signaled a strong improvement in business conditions from the previous month.
Both output and new orders rose at the fastest pace in over a decade in May, although employment growth eased. Firms continued to suffer severe supplier delays, and further built their inventories as a result. Price pressures were intense in May due to increased raw material costs and shortages, with output prices rising at a record pace.
Annabel Fiddes, economics associate director at IHS Markit, commented:
"Stronger demand across key export markets such as Europe, the U.S. and mainland China was mentioned in particular, as the global economy continues to recover from the pandemic. However, [n]ot only are firms facing challenges of material shortages and rising costs, but also a rise in Covid-19 cases across the region. All have the potential to weigh on performance in the months ahead.”
Author: Oliver Reynolds, Economist