News
October PMI rises to 50
By ECCT staff writers, CIER
Taiwan’s purchasing managers' index (PMI) improved slightly compared with September, rising 0.8 points to reach the neutral level of 50, according to the monthly report from the Chung-Hua Institution for Economic Research (CIER). The PMI had fallen below 50 in September, ending a four-month expansion streak, which had followed 14 months of contraction.
Four of the six industries CIER monitors reported contractions, partly due to the pessimistic outlook and lack of order visibility for the next six months, according to the report, namely the chemical, biological and medical industry, the electronic and optical industry, the basic materials industry and the transportation equipment industry. On the other hand, the PMIs for the food and textiles industry and the electrical and machinery equipment industry both rose to above 50.
The sub-index for new business rose 3.4 points to 51.9, while the measure for industrial production picked up 3.7 points to 50.5 and the employment sub-index increased by 0.7 to 50.5. However, the reading on the six-month business outlook was 48.3, rising 0.8 points, but staying in negative territory, which reflects a generally conservative sentiment, the institute said.
Service-oriented firms fared better than manufacturers as indicated by the non-manufacturing index (NMI), which gained 0.5 points to 53.8, remaining in positive territory for the 24th consecutive month, according to CIER. All service sectors, with the exception of wholesale operators, reported a rise in business, according to the report.
