Taiwan’s official manufacturing purchasing managers’ index (PMI) last month shed 1.5 points to 52.2, staying in expansion mode for the third straight month, although uncertainty linked to the US presidential race caused a stir, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday.
The PMI published yesterday by S&P Global also showed that Taiwan’s factory activity continued to expand last month, falling to 52.9 from 53.2 in June.
PMI data seek to measure the health of the manufacturing industry with values of 50 and higher suggesting expansion and points below the neutral threshold indicating contraction.
Photo: CNA.
“Things remain positive overall, but recent remarks by US presidential candidates revived concern over tariff hikes,” CIER president Lien Hsien-ming (連賢明) said.
Taiwanese firms turned from feeling upbeat to cautious after former US president and Republican Party presidential nominee Donald Trump said in an interview last month that Taiwan “took all of [the US’] chip business” and should pay the US for defense. Trump has also pledged to raise tariffs on imports to address what he calls unfair trade practices.
The subindex on new business orders weakened 5.3 points to 53.9, while the industrial production subindex lost 2.5 points to also reach 53.9, the Taipei-based think tank said, citing a monthly survey.
Tech firms generally saw their business pick up, but firms involved in the supply of transportation tools, basic raw materials and machinery equipment reported business decreases, the institute said.
Firms conservatively increased their payroll and sought mostly to meet demand by enhancing their operating efficiency, it said, explaining why the measure on employment added a tiny 0.7 points to 51.9.
The subindex on inventory lost 0.4 points to 49, while clients’ inventory gained 1.5 points to 44.6, consistent with a cautious approach, the survey showed.
The gauge on raw material prices dropped 3.2 points to 57.3, remaining elevated and a concern for margin pressure, the institute said.
The six-month outlook declined 4.2 points to 55, as the US presidential election affected corporate confidence while the high sales season draws near, it said.
The business reading on non-manufacturing sectors fell 1.3 points to 57.3, expanding for 21 consecutive months, with all service-oriented sectors faring well, the institute said in a separate survey.
Private consumption held strong even though the TAIEX pulled back and the central bank tightened credit controls, Lien said.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
RSS