November PMI slips to 43.9

By ECCT staff writers

Taiwan’s official manufacturing purchasing managers’ index (PMI) in November fell 1.5 points month-on-month to 43.9, the fifth straight month below the neutral 50 level and the worst level since July 2012. According to the Chung-Hua Institution for Economic Research (CIER), the decline was attributed to inventory corrections and sluggish end demand.

According to CIER, the reading for the new business orders subindex declined 0.9 points to 41.9, while the reading on industrial production fell 1.8 points to 42.8. The employment index dropped 0.6 points to 48.3, as companies shrank payrolls while the inventory subindex fell 2.9 points to 43.6. In addition, the six-month outlook subindex came in at 25.3, indicating negative sentiment about future business prospects.