March PMI dips to 47.9

02 April, 2024

By ECCT staff writers, CIER


Taiwan’s official Manufacturing Purchasing Managers Index (PMI) in March came in at 47.9, which was down 0.2 points from the previous month. According to the monthly report from the Chung-Hua Institution Economic Research (CIER), while the PMI has been in contraction mode for 13 consecutive months, the outlook for the next six months has risen sharply for two consecutive months. According to CIER, the outlook for most industry sectors has improved, as indicated by an increase of 2.4 points to 56.4 in the six-month business outlook, which is the fastest expansion since April 2022. According to CIER, the electronics and optical industry, and the chemical and biotechnology medical industry have the most optimistic future prospects.


According to the report, the reading on new business orders lost 2 points to 46.9, although the gauge on order visibility climbed above the 50-point mark for almost all sectors except for suppliers of raw materials, the institute’s monthly report showed. The reading on industrial production fell 4.2 points to 47.3, while that of employment increased 1.2 points to 48.9, consistent with it being the slow season for technology products, it said. The inventory measure rose 2.4 points to 46.9, while the customers’ inventory reading gained 2.4 points to 42.9, both reflecting a conservative approach, according to the CIER report.

However, some industry sectors are faring better than others. Among the six major industries, the chemical, biotechnology, medical industry and the electronics and optical industry are optimistic about the future outlook, and the outlook index for the next six months has climbed to an expansion rate of over 60.0%. However, the basic raw materials industry, transportation, and electric power and machinery and equipment have maintained a flat outlook on future prosperity due to the contraction in the quantity of imported raw materials and export order index.

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