Taiwan: Manufacturing PMI rises further in January
February 1, 2021
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, jumped from 59.4 in December to 60.2 in January, marking the best reading since April 2010. As a result, the PMI moved further above the critical 50-threshold separating improving and deteriorating operating conditions.
January’s upturn was spearheaded by stronger job creation and faster growth in input stocks. Output and new orders growth moderated but remained elevated. Operating costs rose at the fastest pace in nearly a decade in January, linked to stock shortages and higher transport costs, while output prices increased at the fastest pace on record.
Annabel Fiddes, associate director at IHS Markit, sounded a note of caution:
“Stock shortages, limited freight availability and delays linked to the pandemic drove a record increase in suppliers' delivery times. If this trend persists, it could hamper production over the coming months. As a result, there was evidence of further stockbuilding among manufacturers in order to help protect against supply chain delays."
Author: Oliver Reynolds, Economist