News
August PMI at 53.6
By ECCT staff writers, CIER
Taiwan’s official purchasing managers' index (PMI) came in at 53.6 in August, above the neutral level of 50 for the fourth consecutive month, indicating economic expansion ahead. According to the monthly report from the Chung-Hua Institution for Economic Research (CIER), while the overall picture is positive, a number of manufacturers have turned cautious about their operations, as an economic recovery seemed uneven. According to CIER, manufacturers in Taiwan are concerned about the outlook for the economy in the United States, adjustments in the monetary policy of the US Federal Reserve, and the US presidential election in November. This took the sub-index for the business outlook over the next six months down 2.2 points in August from a month earlier to 52.8, the lowest in seven months, according to the CIER data.
In August, the sub-indexes for new orders, production, employment and inventories rose 2.8, 3.5, 2.5 and 0.9, respectively, from a month earlier to 56.7, 57.4. 54.4 and 49.9, respectively while the sub-index for supplier deliveries fell 2.6 to 49.5 into contraction mode.
Meanwhile, the sub-indexes for the basic raw materials and transportation equipment industries moved higher in August, from contraction to expansion, while the sub-index for the electricity and electric equipment industries also increased but stayed in contraction mode, CIER said.
The sub-indexes for the electronics and optoelectronics, and food/textile industries remained unchanged in August but stayed in expansion, while the sub-index for the chemical and biotech industry moved lower but also remained in expansion, the data showed.
As for the service sector, CIER’s non-manufacturing purchasing managers index (NMI) expanded for the 22nd consecutive month in August, but the index continued to fall by 2.8 points to 54.5, The sub-index for the business outlook over the next six months fell 3.2 points from a month earlier to 54.6, the lowest level since December 2023.
