News
PMI dips to 49.2 in September
By ECCT staff writers, CIER
Taiwan’s official manufacturing purchasing managers index (PMI) fell 4.4 points to 49.2 in September, breaking a four-month streak above the neutral level of 50, meaning that the outlook for the economy has gone from expansion to contraction.
According to the monthly report of the Chung-Hua Institution for Economic Research (CIER), September's PMI readings for new orders, production and outlook index for the next six months turned negative at the same time (falling to 48.5, 46.8 and 47.5, respectively), which marked a "turning point" indicating that many manufacturers were worried about future prosperity.
CIER attributed the contraction partly to tightening conditions in the United States, China and Europe. In addition, the Organization of the Petroleum Exporting Countries (OPEC) was downbeat on future demand while sales were down in areas such as AI given the high base period comparison and the conservative global outlook for sales of products, such as the new iPhone 16.
Meanwhile the non-manufacturing purchasing managers' index (NMI) continued to fall by 1.2 points to 53.3, the slowest rate of expansion since March 2024. Factors such as the central bank's new wave of credit controls on real estate, financial market fluctuations, the end of the summer vacation season, and the continued downturn in China's international travel industry were cited as reasons for the drop.
