Taiwan PMI hits 56.3 in November thanks to improving operating conditions

Companies have raised production levels at the fastest rates since March.

A marked improvement in operating conditions in the manufacturing sector buoyed Taiwan’s Purchasing Managers’ Index (PMI) to 56.3 in November with total new work rising at the quickest pace in 39 months, according to IHS Markit.

PMI is an indicator of the manufacturing sector’s economic health and business conditions.

IHS Markit adds that Thailand’s latest showing has strengthened the health of the manufacturing sector in each of the past 18 months, with the latest improvement displaying the sector at its strongest since April 2011.

As a result, companies have raised production levels and beefed up their workforce at the fastest rates since March to meet stronger foreign client demand. 

“Furthermore, input buying rose at a pace not seen since last year, while inventories also rose at historically marked rates, suggesting that the sector is on course to remain on an upward trajectory in the coming months,” said IHS Markit Principal Economist Annabel Fiddes. 

However, the report notes that Taiwanese manufacturers continue to be plagued by supply chain disruptions with insufficient stock levels sharply increasing the average delivery time for inputs.