Taiwan: Manufacturing PMI rises in October
November 1, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) rose to 55.2 in October from September's 54.7. As such, the index remained entrenched above the 50-threshold, signaling a faster improvement in business conditions from the previous month.
October’s reading was driven by faster new orders growth. However, export and employment growth eased, while production growth was mild due to supplier delays, and backlogs of work rose rapidly. Moreover, input and output cost pressures intensified.
On the outlook, Annabel Fiddes, economics associate director at IHS Markit, commented:
“The ongoing and severe disruption to supply chains is likely to remain a key challenge for Taiwanese manufacturers in the months ahead. Until vendor performance shows signs of improving, it's likely that output across the sector will remain subdued for some time yet, and that there will be further marked pressure on costs.”
Author: Frederico Teixeira de Abreu, Junior Economist