April PMI hits 68.7
By ECCT staff writers
Taiwan’s official manufacturing Purchasing Managers Index (PMI) expanded at the fastest rate since July 2012, to reach 68.7 in April, indicating continuing economic expansion for the next six months. According to the April report compiled by the Chung-Hua Institution and Economic Research (CIER) and jointly released by the National Development Council (NDC), the sharp rise both in new orders and production indexes was the main reason for the comparative higher PMI reading.
According to the report, both the seasonally adjusted New Orders and Production Indexes rose for the tenth consecutive month by 11.1 and 11.7 percentage points to 71.6 and 70.9 percent, respectively. The New Orders Index also recorded as the highest reading since July 2012.
The Employment Index increased 4.8 percentage points to 63.8 percent, growing at the fastest pace since July 2012. The Supplier Deliveries Index remained high above 70.0 percent for the fourth consecutive month and further increased 0.1 percentage point to 74.8 percent, the highest recorded level since July 2012.
According to CIER, manufacturers continued to increase inventory levels in April raising the Inventories Index a further 2.4 percentage points to 62.3, the fastest growth rate since July 2012. In addition, The Backlog of Orders Index accelerated and registered the highest reading since July 2012 at 71.5. Both the New Export Orders and Imports Indexes also grew at their fastest rates since July 2012, increasing by 1.8 and 1.5 percentage points to 69.8 and 68.1, respectively.
The Future Outlooks Index remained positively above 70.0 percent for four consecutive months and increased 0.2 percentage point to 79.0, with the fastest growth rate since July 2012.
All manufacturing industry categories reported growth in the following order: Electrical & Machinery Equipment (79.3), Electronic & Optical (73.3), Transportation Equipment (70.5), Foods & Textiles (66.0), Basic Materials (65.9) and Chemical, Biological & Medical (59.5).
The non-manufacturing index increased 4.9 points to 60.1, the strongest reading since August 2014, indicating that service-focused companies have also benefited from the economic growth. Business in almost all non-manufacturing sectors improved except restaurants and hotels, according to the report. Restaurants and hotels are reportedly optimistic about business in the next six months, due to the pending summer vacation period.