Despite PMI increase in September, signs of economic slowdown: report
Taiwan’s purchasing managers index (PMI) in September indicated an economic contraction for the third consecutive month, according to a report released Thursday by the Chung-Hua Institution for Economic Research (CIER).
The September PMI rebounded 1.1 points to 46.1 from 45 the previous month.
It was the third consecutive month in which the PMI fell below the 50 mark. In July, the PMI fell 2.2 points from June to 48.6.
A PMI reading of above 50 indicates an expansion in manufacturing activity, while a figure below 50 signals a contraction.
The PMI is comprised of five factors: new orders, production, inventories, employment and supplier deliveries.
Among the six manufacturing sub-sectors covered by the PMI, only food and textiles, at 53.2, continued to expand in September.
The other five sub-sectors contracted, with basic materials at 40.4, electrical and machinery equipment at 42.5, transportation equipment at 43.3, electronics and optoelectronics at 47.8, and the chemical, biological and medical industry at 48.4.
Meanwhile, the CIER released its September non-manufacturing index (NMI), which fell to a new low since August 2014, when the CIER compiled the NMI index for the first time.
The September NMI fell 2.2 points from a month earlier to 45.3.