Taiwan: Manufacturing PMI moderates in January
February 2, 2017
After seven months of uninterrupted improving conditions in Taiwan’s manufacturing sector, the country’s goods producers slowed down the pace in January. The Manufacturing Purchasing Managers’ Index (PMI), reported by Nikkei and IHS Markit, edged down from 56.2—a 68-month high—to 55.6 in January. The indicator continues to rest comfortably above the 50-point threshold, which indicates that the sector’s growth is robust.
Markit indicated that manufacturers continued to report strong increases in output, new orders and employment in January. Accordingly, higher production contributed to a further rise in purchasing activity. In terms of price developments, Taiwanese goods producers indicated that they faced a sharp increase in input costs, mainly due to higher raw material prices. As part of their efforts to protect their margins, firms increased their selling prices.
Author: Ricardo Aceves, Senior Economist