Taiwan’s purchasing managers’ index (PMI) rose to a two-year high last month, indicating robust business improvement for domestic makers as orders rise, a survey released yesterday by HSBC showed.
The HSBC reading stood at 59.8 points last month, advancing for the seventh consecutive month from September’s 57.5, as companies continued to adjust their operations to accommodate higher output requirements, boosting employment and purchasing activity, the report said.
A score above 50 indicates expansion, while a value lower than the benchmark signifies deterioration, the survey said.
ACCELERATING
“The [latest] data indicated a marked improvement in business conditions during the month, with the rate of expansion accelerating solidly since September to the steepest in two years,” the poll said.
HSBC said recovering demand at home and abroad contributed to the rise in the PMI, as makers ramp up production to cope with surging orders. Industrial output has accelerated for the past eight months with the current pace at the fastest level in two years, the survey said.
Procurement activity increased significantly, rising for an eighth consecutive month, although stocks of purchases edged down as some companies utilized existing inventory, the report said.
EMPLOYMENT
Employment advanced for the fourth month, as companies hired more staff to meet expanding output, the report said, adding that inadequate capacity resulted in production backlogs.
Meanwhile, manufacturing lead time expanded owing in part to raw material shortages that pushed up purchase costs for a fifth month, the report said.
Nicholas Winsor, chief executive officer at HSBC Taiwan, said he was upbeat about the economic picture next year as he expected more Chinese tourists to visit Taiwan and benefit local hoteliers, dinners and retailers.
Winsor also voiced support for the planned inking of a financial memorandum of understanding between Taiwan and China.
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