Taiwan PMI shows record low of 44.8 for May

02-Jun-2020 Intellasia | FocusTaiwan | 6:02 AM Print This Post

Taiwan’s manufacturing purchasing managers’ index (PMI) slid to a new low of 44.8 in May, due to the COVID-19 pandemic, the Chung-Hua Institution for Economic Research (CIER) reported Monday.

After seasonal adjustments, the May PMI showed a drop of 2.8 from April to 44.8the lowest level since July 2012 when the think tank began recording the index, according to CIER.

The record low PMI was due mainly to the impact of the COVID-19 pandemic, which has shown no clear signs of abating across the globe, CIER said.

Among the five major sub-indexes in the PMI, new orders, production, and employment showed the steepest monthly decline since 2012, CIER said.

However, the six-month outlook index in the manufacturing sector rebounded to 30.8 in May, an increase of 5.1 from 25.7 in April, CIER said.

CIER researcher Chen Shin-hui said that despite the moderate improvement of the COVID-19 situation in Taiwan, it is too soon to say when the global economy will recover, as there are still disruptions to supply chains, restrictions of movement, and border closures in many countries throughout the world.

She forecast a further downturn of the local economy in the second half of the year, saying businesses will suffer as a result of order cancellations, delivery delays, and disruption of capital flows.

The PMI is based on a monthly survey of some 300 representative manufacturing companies, in the areas, such as new orders, production, employment, supply deliveries, and inventory.

A score above 50 is the median, indicting no change, while scores above and below that number represent expansion and contraction, respectively.

Meanwhile, Taiwan’s non-manufacturing index (NMI) also showed contraction for the month of May, standing at 45.2, although it was 2.7 higher than in April, CIER data showed.

Among the eight major areas in the NMI, only the hotel/restaurant sector expanded in May, increasing to 59.7, according to the data.

Chen attributed the growth in that sub-sector to higher public demand because of Mother’s DayMay 10which she said boosted consumption despite the COVID-19 pandemic.

https://focustaiwan.tw/business/202006010012

 


Category: Taiwan

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