The official manufacturing purchasing managers’ index (PMI) stood at 55.9 last month, slowing from November, but staying above the neutral mark for 10 months running as businesses stepped up activity amid a stable economic recovery, the Chung-Hua Institution for Economic Research (CIER) said yesterday.
The increase was industrywide and could extend into this year, although the pace might decelerate this month as the Lunar New Year holiday cuts the number of working days, the institute said.
“All surveyed manufacturing sectors showed growth momentum, with the pickup most evident for firms involved in the supply of transportation tools, food, textile products and basic raw materials,” CIER president Wu Chung-shu told a media briefing.
PMI seeks to gauge the health of the local manufacturing industry, with scores above 50 indicating an expansion and those below the threshold suggesting a contraction.
The sub-index on new orders rose to 57.3, while the constituent measure on new exports climbed to 53.7, the report said, as all sectors reported an increase in demand.
Demand for the latest smartphones, laptops and other electronics no longer single-handedly accounted for the growth, though it remained a key driver, Wu said.
Food and textile product vendors built up inventory ahead of the Lunar New Year to meet expectations of strong demand over the holiday, Wu said.
It is common for corporate owners and managers in Taiwan to hold banquets at this time of the year to thank their employees.
An economic recovery and rising crude oil prices drove up costs, with the price sub-index accelerating to 74.1, putting more pressure on companies to raise prices to pass on the burden, the report said.
All sectors are looking at continued business improvement as the six-month outlook index rose to 59.8 from 54 in November, it said.
The pickup in business activity extended to service-oriented sectors, as the non-manufacturing index recovered to 51.3, ending two months of contraction, a separate CIER report showed.
All non-manufacturing sectors except companies in the real estate and wholesale businesses registered growth, the report said.
The six-month outlook remained below the neutral mark at 47, though companies engaged in insurance, education, wholesale and retail sales regained confidence, it said.
The data boded ill for domestic demand, despite the government’s effort to shore up consumer confidence and private investment. |
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