June PMI rises to 47.2
By ECCT staff writers
Taiwan’s official purchasing managers’ index (PMI) came in at 47.2 in June, up 2.4 points from 44.8 in May, indicating an easing of the contraction in manufacturing activity, although still below the neutral level of 50, which would have indicated an expansion ahead. According to a report on the website of the Chung-Hua Institution for Economic Research (CIER), suppliers of electronics, chemicals and biotechnological products bounced back into positive territory, while makers of food and textile products approached the neutral mark. However, companies selling electrical machinery, basic materials and transportation tools saw business stall.
According to the report, the pandemic has lent support to companies that supply test kits, masks, and electronic components used in remote learning and working, as well as 5G wireless technology. The sub-index on new business orders picked up significantly from 35.9 to 42.6, while the reading on industrial output rose from 36.8 to 45.3, CIER’s monthly report showed.
The sub-index on employment hovered at similar levels of 45.2, up from 43.3, suggesting firms shed more headcount to cope with a soft patch. The gauge on delivery time stayed high at 53.4, as border controls around the world slowed transportation, it said. Raw material prices jumped by 10.9 points to 57.9 after oil exporting nations practiced restraint and cut supply.
Companies appear more confident about the business outlook, as the sub-index on business prospects for the coming six months rose from 30.8 to 44.1, the survey found.