Taiwan PMI December 2018


Taiwan: PMI falls to 39-months low in December, confirming weak Q4 performance

January 2, 2019

Operating conditions in the Taiwanese manufacturing sector deteriorated for the third consecutive month in December, indicating significantly weaker momentum in the fourth quarter. The manufacturing Purchasing Managers’ Index (PMI), reported by Nikkei and IHS Markit, declined from 48.4 in November to 47.7 in December. The index thus remained below the 50-point threshold that separates expansion from contraction in the manufacturing sector.

The deterioration in December came largely on the back of lower new orders, both foreign and domestic, with both falling to a39-month low in the month. Some respondents notably linked weaker demand to the U.S.-China trade war. This consequently led firms to continue cutting output, but also to shave staffing levels for the first time in over five-and-a-half years. In light of softer demand, backlogs of work decreased again in December—after falling for the first time in over two years in November.

Looking at supply indicators, purchasing activity also declined at the steepest rate in over three years, while the decline in input inventories that began in November continued at a sharper rate in December. Finished goods inventories also decreased in December. Meanwhile, supplier delivery times lengthened amid ongoing input shortages. On the price front, firms reported lower input costs for the first time in almost three years, while simultaneously decreasing their selling prices for the first time in a year-and-a-half on weak demand.

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 2.4% in 2019, which is up 0.2 percentage points from last month’s forecast. For 2020, participants see fixed investment increasing 1.6%.

Author:, Economist

Sample Report

Looking for forecasts related to PMI in Taiwan? Download a sample report now.


Taiwan PMI Chart

Taiwan PMI December 2018 0

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.

Taiwan Economic News

  • Taiwan: Growth accelerates in Q4 2019

    February 12, 2020

    The economy expanded 3.3% in the fourth quarter compared to the same quarter a year earlier, according to a second GDP release.

    Read more

  • Taiwan: Exports and imports slump in January, trade surplus widens

    February 7, 2020

    Merchandise exports slumped 7.6% in annual terms in January, contrasting December’s 4.0% expansion.

    Read more

  • Taiwan: Inflation jumps to 21-month high in first month of the year

    February 6, 2020

    Consumer prices increased 0.59% in January compared with the previous month, accelerating from December ’s revised 0.06% increase (previously reported: +0.04%).

    Read more

  • Taiwan: Manufacturing PMI rises to 17-month high in January

    February 3, 2020

    The manufacturing Purchasing Managers’ Index (PMI), reported by IHS Markit, climbed to 51.8 in January from 50.8 in December, thus moving further above the 50-threshold and signaling the fastest pace of improvement in operating conditions since August 2018. The improvement came amid stronger growth of both output and new work received by manufacturers, while export sales returned to expansionary territory for the first time in 17 months.

    Read more

  • Taiwan: Industrial production soars in December

    January 22, 2020

    Industrial output increased 6.0% in December compared to the same month a year earlier, quickening from the 1.8% increase recorded in November. The acceleration in December was chiefly driven by strong output growth in the manufacturing sector, which represents more than 90% of total industrial production, while a return to expansion in electricity and gas supply supported the overall figure.

    Read more

More news

Search form