Wed, Oct 02, 2013 - Page 13 News List

PMI unchanged for third month amid mild growth

By Amy Su  /  Staff reporter

The official purchasing managers’ index (PMI) stood at 52.6 last month, remaining at the same level for the third consecutive month amid a moderate economic expansion, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday.

The reading of 52.6 last month marked the seventh consecutive month the PMI has stayed above the threshold of 50, the institute said. A reading above 50 indicates expansion, while a figure below 50 shows a contraction.

“Taiwan’s economy is on the track of steady rebound, but the momentum has been lower than our expectations,” CIER president Wu Chung-shu (吳中書) told a press conference.

The PMI’s new orders sub-index declined by 4.4 points from a month earlier to 50.7 last month, its lowest level this year, making it the major drag on the headline PMI, while both the production and inventories sub-indices also posted weakening growth last month, Wu said.

However, the employment sub-index rose 1.9 to 54.5 last month from August, expanding for the 10th consecutive month, and the sub-index of supplier deliveries also climbed by three to 52.6 last month, the report showed.

Supply Management Institute in Taiwan (SMIT, 中華採購與供應管理協會) executive director Steve Lai (賴樹鑫) said he had thought the electronic component manufacturers would show strong seasonal momentum on the back of the recent launches of Apple Inc’s iPhone 5S and iPhone 5C.

“However, the momentum [of the electronics component sector] is not enough to drive up the performance of the overall manufacturing sector,” Lai said.

Notably, the food and textile sectors saw sentiments decline, as the end of the Mid-Autumn Festival and Ghost Festival saw seasonal demand on the food manufacturers gradually fade, Lai added.

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