Peak season is not prosperous and Taiwan’s PMI has contracted for 4 consecutive months – Teller Report Teller Report

China News Agency, Taipei, November 1st TaiwanOn November 1, the China Economic Research Institute announced the October Manufacturing Purchasing Managers Index (PMI), which increased 0.5 percentage points year-on-year to 45.4%, while the Non-Manufacturing Managers Index (NMI ) dropped slightly to 50%.

“Central News Agency”, “UnitednewsNet ”and other Taiwanese media reported that although the Taiwanese PMI rebounded slightly in October, it has been contracting for four consecutive months; the forecast index for the manufacturing industry for the next six months fell by 3.5 percentage points to 24.8%, an all-time low.

In general, PMI and NMI are used as indicators to show the overall economy, ranging from 0% to 100%, with 50% as the boom and bust line, over 50% means the boom is expanding, otherwise it means the boom is shrinking.

The data shows that the outlook for Taiwan’s top six industries for the next six months all shows a tightening. According to the Chinese Academy of Economics, the main reason for the slight rebound in the October PMI is that although the new orders index has contracted for seven consecutive months, the rate of contraction has slowed and the index has rebounded.

Zhang Chuanzhang, the head of the Chinese Academy of Economics, said on the same day that Taiwanese producers felt that “the high season was not prosperous” in the survey and demand has not improved. Taiwan is also dominated by small and medium-sized enterprises Due to the double impact of breaking the capital chain and rising costs, manufacturers have a trend in the market outlook. Electronics and machine tool manufacturers have started taking unpaid leave due to falling orders and their prospects for the future are relatively pessimistic.

Zhang Chuanzhang looks forward to the decline in global end market demand in the fourth quarter of this year and the first half of next year. Taiwan must be careful to deal with it. The momentum of economic growth next year is not optimistic.

According to Taiwan’s “Economic Daily” website, Taiwan’s NMI halted its expansion for three consecutive months in October, down 2.2 percentage points to 50%. (Source: Chinanews.com)

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