Taiwan PMI October 2016

Taiwan

Taiwan: Manufacturing PMI rises to over two-year high

November 1, 2016

Manufacturing activity in Taiwan registered a fifth consecutive month of improving conditions, supported by stronger output growth and rising new orders. The Manufacturing Purchasing Managers’ Index (PMI), reported by Nikkei and IHS Markit, edged up from 52.2 in September to 52.7 in October. The Manufacturing PMI reached the highest level since September 2014 and moved further above the 50-point threshold that separates expansion from contraction in the sector.

The solid start to the fourth quarter stemmed from strong growth in manufacturing production and new orders. Sustained growth in new work prompted firms to increase their purchasing activity, which led to an increase in stocks of finished goods, but firms were reluctant to increase their staffing levels. Regarding prices, Taiwanese goods producers signaled that input costs increased notably again in October, however they chose to raise their output charges only modestly.

FocusEconomics Consensus Forecast panelists expect investment to expand 0.9% this year, which is down 0.1 percentage points over last month’s forecast. For 2017, participants expect investment to increase 1.8%, which is unchanged from last month’s forecast.


Author:, Senior Economist

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Taiwan PMI October 2016

Note: Nikkei Taiwan Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Nikkei and IHS Markit.


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