Taiwan PMI September 2021

Taiwan

Taiwan: Manufacturing PMI moderates in September

October 1, 2021

The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell to 54.7 in September from August's 58.5. September's result marked the worst reading since August 2020. As a result, the index remained above the 50-threshold, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.

The slowdown was driven by weaker growth in output and new work amid raw material shortages and supplier delays. Meanwhile, purchasing activity grew at a slower pace, albeit still robust, owing to firms’ effort in building buffer stocks against the supply chain disruptions. Meanwhile, inventories of finished items grew at the fastest pace in seven months amid difficulties in shipping due to delays and container shortages. Turning to prices, higher input costs stemming from scarcity and higher shipping fees were promptly passed on to clients, via rising output prices.

On the outlook, Annabel Fiddes, economics associate director at IHS Markit, commented:

"It will be crucial for supply chains to improve in order for operations to fully normalise and for a sustained economic recovery to get underway. At the same time, the pandemic continues to cloud the outlook and adds a question mark over when this can happen.”

FocusEconomics Consensus Forecast panelists currently project fixed investment to expand 9.5% in 2021, which is up 0.6 percentage points from last month’s forecast. For 2022, participants see fixed investment increasing 4.0%, which is up 0.2 percentage points from the previous month’s estimate.


Author:, Junior Economist

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Taiwan PMI September 2021 0

Note: Taiwan Purchasing Managers’ Index (PMI). Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit.


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