The nation’s manufacturing activity expanded for the 15th straight month last month, despite the official purchasing managers’ index (PMI) dipping last month from a month earlier, according to a report released yesterday by the Chung-Hua Institution for Economic Research (中華經濟研究院, CIER).
The PMI reading stood at 58.6 last month, down 1.6 points from a month earlier, the Taipei-based think tank said. A PMI above 50 represents expansion and below 50 signifies contraction.
The index — a leading indicator of the economic outlook over the next three to six months — comprises five subindexes: new orders, production, employment, inventories and supplier deliveries.
CIER president Wu Chung-shu (吳中書) said the results of the PMI last month indicated a slowing economic recovery, in line with the global trend.
GOOD RECOVERY RATE
“Taiwan’s economic recovery is continuing its pace, because the index has been maintained at a relatively high level,” Wu told a press conference.
The PMI is to consolidate in the following months, Wu said, adding that he would continue to keep a bullish outlook for the nation’s economy if the index maintains above 55 points by the end of this year.
Although the subindexes of new orders and production both dropped last year from a year earlier, both sectors were maintained at a relatively high level and were the major driver for the manufacturing industry last month, the institute said in a report.
The subindex of new orders fell 4.8 points to 62.3 points last month from a month earlier, while the production subindex was down to 60.9, a decrease of 5.9 points from April, the report said.
The three remaining subindexes stayed in expansion territory last month, according to the report.
The PMI survey last month also showed that recent anti-China protests in Vietnam did not have a major impact on Taiwan’s manufacturing sector, as most surveyed companies still experienced growing or stable numbers of orders, Wu added.
A separate PMI report issued by British bank HSBC Holdings PLC and compiled by Markit Ltd, a London-based financial data provider, showed the nation’s manufacturing activity reading rose slightly to 52.4 last month, from 54.3 in April.
Hong Kong-based HSBC economist John Zhu (朱日平) said Taiwan’s manufacturing sector stabilized last month, but still lacks momentum.
“We saw some encouraging acceleration in output and employment growth [last month], but domestic demand remains relatively weak compared with robust external demand, dragging overall growth on new orders to an eight-month low,” the HSBC economist said in a statement.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
STAYING AHEAD: TSMC expects its sales this year to grow 14 to 19 percent and could spend up to US$3.52 billion on research and development, leaving its rivals far behind Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) reported that the US last year approved 99 percent of its patent applications, which placed the tech giant among the top patent holders in the US. In its Corporate Social Responsibility Report, TSMC said it last year secured about 3,600 patents worldwide, including more than 2,300 in the US. As of the end of last year, TSMC owned more than 39,000 patents, the report said. The company last year filed almost 6,500 patent applications worldwide and ranked among the top 10 patent applicants in the US. In Taiwan, it was the largest patent applicant for the fourth