Taiwan: Manufacturing PMI hits 18-month high in August
September 1, 2016
Taiwanese goods producers registered higher production for the third consecutive month in August. The Manufacturing Purchasing Managers’ Index (PMI), reported by Nikkei and IHS Markit, rose from 51.0 in July to 51.8. The Manufacturing PMI reached the highest level since February 2015 and moved further above the 50-point threshold that separates expansion from contraction in the sector.
August’s reading reflected a strong increase in both output and new business. Due to strong growth in output, firms indicated that they had increased their staff levels and their purchasing activity. The increase in employment was the fastest in two years. Regarding price developments, respondents to August’s survey said that input prices had eased over the previous month and output prices had fallen only marginally.
In a statement, Nikkei and IHS Markit pointed out that, “Latest PMI data suggest that the recovery in Taiwan’s manufacturing sector gained momentum in August. Output expanded at the fastest pace in 2016 to date, supported by stronger growth in total new work and a further rise in export sales. Another positive development was the steepest increase in workforce numbers for two years, as companies added to their production lines to meet higher output requirements.”
Author: Ricardo Aceves, Senior Economist