Taiwan Manufacturing PMI Hits 62.5%, Fastest Expansion in Nearly Five Years

Taiwan’s manufacturing sector recorded its fastest expansion in almost five years in August, with the purchasing managers’ index climbing one percentage point to 62.5%. The seasonally adjusted figure marked an 11th consecutive month of expansion and the strongest pace since August 2021.

The Chung-Hua Institution for Economic Research said five of the six manufacturing sectors also expected expansion over the next six months. Electronics and optics led both current activity and future expectations, posting readings of 65.2% and 69.3%, respectively. Electrical and machinery equipment followed with a current reading of 61.1% and a six-month outlook of 68.4%.

Chemical, biotechnology and medical industries recorded 54.5%, basic materials 53%, food and textiles 52.4%, and transport equipment 50.6%. The transport equipment sector was the only manufacturing group to expect contraction over the next six months, with an outlook reading of 47.1%.

Services and other non-manufacturing industries also remained in expansion, though at a slower rate. The NMI fell 1.7 percentage points to 55.6%, marking 18 straight months above the expansion threshold. Accommodation and food services led the eight sectors at 71.3%, while transport and warehousing recorded the weakest reading at 50.4%. All eight sectors still expected expansion over the following six months.