April PMI dips to 56.3

04 May, 2022

By ECCT staff writers

Taiwan’s official manufacturing purchasing managers’ index (PMI) came in at 56.3 in April, remaining in expansionary territory (above 50) for the 22nd consecutive month, but shedding 1.5 points from the March level. According to the Chung-Hua Institution for Economic Research (CIER), mounting inflationary pressures and China’s Covid-19 lockdowns weighed on new orders and clouded the outlook.


While most sub-indices remained in positive territory, the sub-index of new orders shed 4.7 points to 47.7, falling below 50 for the first time in 21 months, as customers were hesitant about placing new orders in the face of uncertainty, according to CIER.


The electronics sector saw new orders dive 10.1 points to 52.5, the sub-index on industrial output lost 5 points to 50.2, while the reading on staffing expanded 0.5 points to 54.6, the survey showed.


Lockdowns in several cities in China drove up suppliers’ delivery time by 1.8 points to 67.4, CIER said, adding that raw material prices remained high at 84.1, although they eased by 3.4 points from one month earlier.


Manufacturers’ sentiment also weakened as the six-month outlook subsided 8 points to 52.9 last month, the lowest since July 2020. The sentiment at transportation tool makers, in particular, slid to 45.2 due to worsening component shortages, according to CIER.


Among the six major industries in the PMI, the sub-indices for chemicals and biotechnology and basic raw material industries increased from a month earlier to 62.1 and 61.6 respectively, CIER said.


Meanwhile, the sub-indices for food and textiles, electronics/optoelectronics, electrical equipment and machinery, and transportation equipment rose to 59.6, 59.1, 58.1 and 56.2 respectively, it added.


Meanwhile, the non-manufacturing index came in at 55.1, down slightly from 55.8 in March.

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