January PMI at 48.0

02 February, 2024

By ECCT staff writers, CIER


Taiwan’s official seasonally adjusted Manufacturing Purchasing Managers' Index (PMI) in January 2024 contracted for the 11th consecutive month. However, the month's index rebounded by 1.2 points to 48.0 from the previous month and the outlook index for the next six months rose for the third consecutive month.


According to the Chung-Hua Institution for Economic Research (CIER), production schedule adjustments explained why the subindex of new business orders dropped by 0.3 points to 46.2, but the sub-index on industrial production rose 4 points into expansionary territory at 51.3. Meanwhile, the sub-index for employment rose by 0.5 but remained below the neutral level at 48.3, as firms raised staffing levels slightly. The sub-index on delivery time rose 1.6 points to 48.4, reflecting shipping disruptions linked to Red Sea rerouting, according to CIER. The subindex on inventory came in at 45.7, virtually unchanged from 45.8 in December. Raw material prices gained 2.4 points to 56.2. The measure on the six-month outlook rose 0.8 points to 46.2, indicating that local manufacturers remain largely conservative.

By comparison, services providers fared stronger, with the non-manufacturing index coming in at 53.5, expanding for the 15th consecutive month, albeit down 2.5 points from the previous month, according to CIER.

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