Taiwan: Manufacturing PMI rises further in March
April 1, 2021
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, rose from 60.4 in February to 60.8 in March, marking the best reading in eleven years. As a result, the PMI moved further above the critical 50-threshold separating improving and deteriorating operating conditions.
March’s upturn was spearheaded by stronger growth in new orders and employment, while output and exports were upbeat. Input costs rose at a rapid pace, which fed through to the fastest growth in output costs on record. Moreover, supply chain delays were the worst on record in March, amid shortages of shipping containers and raw materials.
Annabel Fiddes, associate director at IHS Markit, commented:
"March PMI data rounded off the best quarterly performance for Taiwan's manufacturing sector for 11 years, with firms recording substantial gains in both output and sales. The sustained and strong increases in new orders suggest that the sector will continue to see robust growth as we head into the second quarter, particularly as overseas orders have continued to recover at a rapid pace. However, the survey also highlights potential constraints for future performance, [crucially] a lack of inputs at vendors and bottlenecks in supply chains."
Author: Oliver Reynolds, Economist