August PMI falls to 45.5

04 September, 2023

By ECCT staff writers, CIER


Taiwan’s seasonally adjusted manufacturing Purchasing Managers Index (PMI) fell 0.6 points to 45.5 in August, remaining in contraction (below 50) for the sixth consecutive month.


According to the latest PMI report from the Chung-Hua Institution for Economic Research (CIER), among the five component indicators, seasonally adjusted new orders, production and manpower employment, supplier delivery time and inventory all had readings of less than 50.


Broken by industry sector, five major industries showed PMI contractions. Ranked according to the speed of contraction were the electronics and optics industry (43.2), electric power and mechanical equipment industry (43.4), basic raw materials industry (46.3), transportation industry (46.5) and the chemical, biotechnology and medical industry (47.4). Only the food and textile industry (52.1) showed a PMI expansion.

Meanwhile the non-manufacturing industry remained in positive territory with the NMI at 54.3, down by 1.4 points from July. Most services providers reported an increase in business during last month, although hotels and restaurants bucked the trend after a growing number of Taiwanese travelled abroad. Furthermore, the business outlook measure weakened 5.8 points from 50.8 in July to 45 in August, suggesting an overall negative view of business ahead.

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