The nation’s official manufacturing purchasing managers’ index (PMI) last month climbed to 59 from 58 the previous month, as demand for all product categories picked up amid a stable global economy, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday.
The economic gauge, which aims to capture the pulse of the local manufacturing industry, has expanded for 23 consecutive months without signs of a slowdown, thanks to a healthy economy at home and abroad, the Taipei-based institute said.
“Local manufacturing firms in all sectors saw a strong start to the year and are upbeat about their business outlook in the coming six months,” CIER president Wu Chung-shu (吳中書) told a news conference.
Scores greater than 50 indicate business expansion, while values below the neutral threshold suggest a decline.
The new orders subindex rose to 60.9, while the industrial output read 61.2, the monthly CIER report showed, as domestic and foreign clients stepped up purchasing activity.
The expansionary cycle has proved resilient and stable compared with previous years, Wu said, adding that he has yet to spot major downside risks that might disrupt growth.
The Nikkei Taiwan manufacturing purchasing managers’ index shared the rosy view with a reading of 56.9, the highest since April 2011, a separate report by the Japanese news organization compiled by IHS Markit Ltd showed.
IHS Markit chief economist Annabel Fiddes attributed the business improvement to strong global demand.
The industry looks well-placed to continue the current course of growth, which explains why local firms hired more workers and expanded production capacity, Fiddes said.
A key factor that could dampen performance is access to inputs, given the increase in average delivery times for purchased items, she said.
Both reports observed sharp spikes in raw material costs, with the raw material prices subindex soaring to 79.2 in the CIER survey.
Factory gate charges gained at the steepest rate in 81 months, the Nikkei report said.
Companies in all manufacturing sectors expect the positive cycle to be sustained over the coming six months, CIER said.
Strong exports helped bolster business for local firms in nonmanufacturing sectors, with the Nikkei index reading 55.9 last month, up from 53.3 one month earlier, it said.
All service-oriented sectors reported business improvement last month, but restaurant and hotel operators had a dim view going forward, Wu said.
Hospitality providers generally see a seasonal business decline after the Lunar New Year holiday, which runs from Feb. 15 to Feb. 20 this year.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
FUTURE PLANS: Although the electric vehicle market is getting more competitive, Hon Hai would stick to its goal of seizing a 5 percent share globally, Young Liu said Hon Hai Precision Industry Co (鴻海精密), a major iPhone assembler and supplier of artificial intelligence (AI) servers powered by Nvidia Corp’s chips, yesterday said it has introduced a rotating chief executive structure as part of the company’s efforts to cultivate future leaders and to enhance corporate governance. The 50-year-old contract electronics maker reported sizable revenue of NT$6.16 trillion (US$189.67 billion) last year. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), has been under the control of one man almost since its inception. A rotating CEO system is a rarity among Taiwanese businesses. Hon Hai has given leaders of the company’s six