Taiwan: Manufacturing sector growth edges down in April
May 2, 2017
Operating conditions in Taiwan’s manufacturing sector lost momentum in April on the back of a slippage in output and new order growth. Despite marking the weakest reading since last October, the Manufacturing Purchasing Managers’ Index (PMI), reported by Nikkei and IHS Markit, came in at 54.4 in April. The print was below March’s 56.2 figure but still rests comfortably above the 50-point threshold, which separates expansion from contraction in domestic manufacturing activity.
Taiwanese manufacturers remain on track to support economic growth this year. Nonetheless, April’s data showed slower growth in domestic-oriented new orders, which in turn weighed on total output. Nonetheless, firms commented on a sizeable upturn in client demand in the latest survey period, which bodes well for manufacturers going forward. Upbeat sentiment prompted Taiwanese manufacturers to expand their staffing levels at a pace similar to March’s robust reading. Regarding prices, the speed of inflation hit a six-month low but input prices still rose across the board. Companies were largely able to roll over these costs onto customers.
Author: David Ampudia, Economist