Taiwan: Manufacturing PMI jumps to two-and-a-half year high in September
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, jumped to 55.2 in September from 52.2 in August, marking the best result since March 2018. As a result, the PMI moved further above the critical 50-threshold, pointing to a sizable improvement in operating conditions in the Taiwanese manufacturing sector at the tail-end of Q3.
September’s upturn was spearheaded by robust growth in output and new orders. The rate of output growth was the quickest in two-and-a-half years while new business accelerated to a near three-year high, as the manufacturing sector shrugged off the constraining effects of the coronavirus pandemic and export sales soared. As a result, companies increased their staffing levels for the first time since March amid increasing backloads of work. On the price front, although input costs increased at the sharpest rate in almost two years, fierce market competition prevented firms from meaningfully raising their selling prices. Lastly, business confidence rose to an eight-month high in September, reflecting forecasts of healthier global economic conditions next year.
Commenting on the release, Annabel Fiddes, associate director at IHS Markit, said:
“The recovery of Taiwan’s manufacturing sector gathered pace in September, as firms reported firmer market conditions and the resumption of works at clients. […] However, concerns around the globe over a second wave of infections could hamper any recovery if this leads to a re-tightening of public health measures and further disruption to business operations.”