Taiwan: Manufacturing sector sees marginal improvement in April
The S&P Global Taiwan Manufacturing Purchasing Managers’ Index (PMI) rose to 50.2 in April from 49.3 in March. As a result, the index moved above the 50.0 no-change threshold, signaling an improvement in manufacturing sector operating conditions compared to the previous month for the first time since mid-2022.
April’s uptick was driven by increases in output and new orders alongside a rise in employment. This came despite market demand remaining relatively subdued—particularly overseas, with exports declining for the 26th straight month. Muted demand led firms to continue a cautious approach to buying activity and utilize existing inventories.
Input price inflation accelerated in April due to a broad-based rise in raw material costs. However, firms’ ability to pass these increased costs on to customers was limited, resulting in a marginal decline in output charges for the fourth consecutive month. Business sentiment remained positive, with firms hopeful for an improvement in market demand, which they expect will lead to pickups in sales, output, and productivity over the next 12 months.