Taiwan: Manufacturing PMI falls in August
The S&P Global Taiwan Manufacturing Purchasing Managers’ Index (PMI) fell to 51.5 in August from 52.9 in July. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in manufacturing-sector operating conditions compared to the previous month.
The latest PMI reading reflects slowdown in output and new orders growth. Shipping delays contributed to a significant buildup in warehouse inventories, which was the fastest since March 2022. Employment remained stable as firms focused on productivity gains.
Input price inflation was at its weakest since April. Companies attempted to pass on higher costs to clients but market competition limited pricing power, resulting in only a modest rise in output charges. Finally, business sentiment declined to its lowest level in eight months due to cost pressures and economic concerns, despite expectations of productivity and demand growth supporting future output.