Taiwan’s manufacturing sector continued to expand in April, but at a weaker pace, data from Markit Economics showed Wednesday.
The headline HSBC Purchasing managers’ Index – a composite indicator designed to provide a single-figure snap-shot of the health of the manufacturing sector – posted 51.2 in April, down from 54.1 in March.
“The island remains in a slow-down mode,” said Donna Kwok, Economist at HSBC. “We expect weak final demand in the West, especially Europe, to constrain the island’s export growth for a while longer, making domestic demand an important growth driver to monitor.”
Production advanced for the third month, but the pace was weaker than in March. Likewise, new business volume improved at a slower pace in April.
Despite output growth being faster than that of new orders, firms continued to accumulate backlogs of work in April.
Input prices faced by manufacturers continued to rise solidly in April. However, manufacturers reduced output prices in response to client requests for lower charges.