Taiwan: Manufacturing PMI ticks up in August but remains depressed
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) increased from 44.1 in July to 44.3 in August. As a result, the index remained below the 50-threshold, but pointed to a softer deterioration in business conditions.
August saw sharp falls in output, new orders and new export orders. In addition, employment and purchasing activity declined, while business sentiment was downbeat. Input costs rose in August, though output costs continued to decline as firms offered discounts in an attempt to stimulate demand. Taiwan’s manufacturing sector is suffering more than that of most other economies—the JPM Global Manufacturing PMI clocked 49.0 in August, the latest month of data available. This is likely due to Taiwan’s reliance on the currently sluggish Chinese market.
Annabel Fiddes, economics associate director at S&P Global Market Intelligence, said:
“Overall, the PMI data suggest that official industrial production data will continue to disappoint after posting double-digit declines in recent months. Until we see an improvement in global economic conditions, which have been under pressure from stubborn inflation and higher interest rates, it’s unlikely that Taiwan’s manufacturing sector will swing back into growth territory any time soon.”