April PMI falls to 42.8
By ECCT staff writers, CIER
Taiwan’s seasonally adjusted manufacturing Purchasing Managers Index (PMI) contracted for a second consecutive month by 4.5 percentage points to 42.8 in April, according to a report from the Chung-Hua Institution for Economic Research (CIER).
Among the five component indicators, seasonally adjusted new business orders, production, employment, supplier delivery times and inventory all contracted. The subindex of new business orders dropped 3.9 points to 40.6, while industrial production fell 13.5 points to 38.5, breaking a two-month rising streak.
Broken down by industry sector, four major industries saw PMI contractions: the electric power and mechanical equipment industry fell to 43.9, while the transportation industry dropped to 44.6, the electronics and optics industry declined to 45.7, while the reading for the chemical and biotechnology medical industry came in at 46.7. However, the food and textile industry and the basic raw material industry bucked the trend with positive readings of 52.7 and 51.4, respectively.
Purchasing activity in the service sector gained further momentum, leading to rise in the nonmanufacturing index (NMI) by 2.6 points to 55.8, although wholesale operators bucked the trend, according to CIER.
Nonmanufacturing businesses are divided about their business outlook: Hospitality operators, retailers and transportation service providers are upbeat, but property brokers and financial companies expect a soft patch ahead, according to CIER.