June PMI at 53.7

By ECCT staff writers, CIER

Taiwan’s official seasonally adjusted Manufacturing Purchasing Managers Index (PMI) in June 2024 dipped 0.9 points to 53.7 but remained in expansionary territory for the second consecutive month, according to the monthly report from the Chung Hua Institution for Economic Research (CIER). According to the report, geopolitical risks and the re-emergence of container shortages in shipping put a dampener on an otherwise mostly positive outlook. In June, both new orders and production have expanded for three consecutive months, but the expansion rate has slowed down. The two indices fell 4.6 points to 59.2 and 56.4, respectively. In addition, employment expanded, supplier delivery times increased and inventories continued to shrink. Broken down by industry sector, five major sectors were above the neutral level of 50, indicating expansion ahead. In order of expansion speed, the food and textile industry came in at 58.5, chemical and biotechnology medical industry at 54.7, electronics and optical industry (54.3), electric equipment and machinery industry (54.2%) and basic raw materials industry (53.0). Only the transportation industry (47) continued to report tightening.

Meanwhile, the non-manufacturing index rose 4.4 points to 58.6, expanding for the 20th consecutive month, indicating growth ahead for the service sector.