Taiwan: Manufacturing PMI picks up in October
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) increased from 46.4 in September to 47.6 in October. As a result, the index remained below the 50-threshold, but pointed to a softer deterioration in manufacturing sector business conditions for the third straight month. This suggests that the worst of the manufacturing downturn is in the past—which chimes with recent industrial production readings.
In October, output, purchasing activity, exports, and new work declined at softer rates, while input and output prices rose at faster rates and businesses were the most downbeat on the 12-month outlook since January.
Annabel Fiddes, economics associate director at S&P Global Market Intelligence, said: “Firms recorded the softest reductions in sales and output for seven and six months, respectively. Although companies cited that overall global demand conditions remained sluggish, there were reportedly some pockets of growth in key export markets such as Europe and the US. […] Despite the relative improvements in many of the PMI sub-indices, it’s clear the sector is still struggling as clients worldwide maintain cautious inventory policies amid strong cost pressures and tighter financial conditions.”