May PMI falls to 44.8
By ECCT staff writers
Taiwan's manufacturing purchasing managers' index (PMI) fell 2.8 points month-on-month to 44.8 in May, owing to the impact from the coronavirus pandemic, according to a report by the Chung-Hua Institution for Economic Research (CIER).
May’s PMI was the lowest since July 2012 when the think tank began recording the index, according to CIER.
Among the five major sub-indexes in the PMI, new orders, production, and employment showed the steepest monthly declines since 2012, CIER said.
The sub-index on new business orders fell to 35.9, the reading on industrial output slumped to 36.8 and the measure on new export orders tumbled to 34.4. In addition, firms reduced headcount levels, accounting for a 3.2 point drop in the employment sub-index, according to CIER.
However, inventory levels stayed high, which CIER attributed to fears of potential supply chain disruptions. In addition, the six-month outlook index in the manufacturing sector rebounded to 30.8 in May, an increase of 5.1 from 25.7 in April.
Meanwhile, Taiwan's non-manufacturing index (NMI) also contracted May from a year earlier, standing at 45.2, although it was 2.7 higher than in April, according to CIER.
Among the eight major areas in the NMI, only the hotel/restaurant sector expanded in May, increasing to 59.7, according to the data.