De­spite PMI in­crease in Septem­ber, signs of eco­nomic slow­down: re­port

The China Post - - TAIWAN BUSINESS -

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.

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