October PMI falls to 47.1
By ECCT staff writers, CIER
Taiwan's manufacturing purchasing managers' index (PMI) fell 1.1 points from the previous month to 47.1 in October, marking the eighth consecutive month of contraction (below 50). According to a press release by the Chung-Hua Institute of Economic Research, September’s pick-up in new business orders proved short-lived, and sentiment in industry lacks confidence due to rising geopolitical and overall economic uncertainty. Some industry players have predicted that demand will not pick up until the second quarter of 2024.
The subindex for new orders and production, which had expanded for the previous two consecutive months, both contracted to below the neutral 50 level. Meanwhile, the manufacturing outlook index for the next six months fell to 39.8, contracting for the 18th consecutive month as all six major industry sectors showed a tightening outlook for the next six months, based on the order visibility.
Meanwhile the outlook for the services industry remained positive, according CIER’s October non-manufacturing managers index (NMI) reading, which came in at 53.2, the 12th consecutive month of expansion.