Taiwan: Manufacturing PMI picks up in July
August 2, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) came in at 59.7 in July, up from June's 57.6. Consequently, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
July’s reading was driven by stronger growth in output, new orders and exports. Backlogs of work increased sharply amid ongoing supply constraints, while employment growth was modest. Both input and output cost inflation remained elevated, despite easing.
On the near-term outlook, Annabel Fiddes, economics associate director at IHS Markit, commented:
"The data therefore indicate that the sector is expanding at one of the strongest rates seen over the past decade, boosted by firmer demand across key export markets such as Europe, mainland China and the U.S. However, companies are still noting a considerable impact from ongoing supply chain disruption amid the pandemic, as a lack of stock at vendors and low availability of shipping containers limits overall capacity and turnaround of orders.”
Author: Oliver Reynolds, Economist