News
November PMI rises to 51.4
By ECCT staff writers, CIER
Taiwan’s seasonally adjusted Manufacturing Purchasing Managers Index (PMI) rose by 1.4 points to 51.4 in November 2024. According to the monthly report of the Chung-Hua Institution for Economic Research (CIER), President Trump's election victory in the United States has boosted new orders for some electronics, optics, and electric power and mechanical equipment industries. In addition to concerns about tariff changes, the mid- to long-term strategic motivation of the industry to accelerate diversification of manufacturing and reduce geopolitical risks has also brought forward some orders, especially capital expenditures and key material needs in the semiconductor supply chain. However, geopolitical risks and uncertainty remain high.
Of the five component indicators, seasonally adjusted new orders, production and manpower employment expanded, supplier delivery times decreased and inventories continued to shrink. Of the six major industries, three were in expansion and three in contraction. The chemical and biotech industry (with a reading of 54.9), the raw materials industry (54) and the electric power and mechanical equipment industry (53.3) expanded, while the transportation industry (42.4) and the electronics and optical industry (48.7) continued to report tightening while the food and textile industry was flat (50.0%).
Although the manufacturing orders and production index both expanded in November compared with October, geopolitical risks and other uncertainties are still high, and there is still no clear mid- to long-term signal for end demand. The outlook index for the next six months has been in contraction for three consecutive months, falling by a further 0.4 points to 47.9 in November.
Taiwan’s non-manufacturing sectors remained resilient, with the non-manufacturing index edging up 0.8 points to 54.6, rising for a 25th consecutive month, CIER said in a separate report. The start of the high sales season for domestic demand boosted the index, although the six-month business outlook softened 0.9 points to 50.6, as real-estate brokers grew negative about housing transactions following broad credit controls introduced by the central bank in September. Wholesale operators also held negative views, but financial institutes, hospitality facilities and retailers were all upbeat about their business going forward, according to CIER.
