Taiwan: Manufacturing PMI improves in September
The manufacturing Purchasing Managers’ Index (PMI), reported by IHS Markit, increased to 50.0 in September from 47.9 in August, hitting the 50.0-threshold that separates expansion from contraction and thereby marking the first time in one year that the manufacturing sector has not contracted.
The overall manufacturing PMI recovered in September thanks to a recovery in the output and new orders components of the PMI, which suggested that both output and new orders continued to decrease in the month but at a less severe pace than in August. Possibly on the back of this, manufacturers increased their headcounts in September at the fastest pace since May 2018, although the increase itself remained modest. Nevertheless, manufacturers reduced their purchasing activity in September, as has been the case every month so far this year. In terms of prices, input prices continued to fall in September, as did output prices. Looking ahead, business confidence dipped in September, although manufacturing firms remained mildly optimistic about the 12-month business outlook.