Taiwan’s manufacturing sector saw slight improvement in December of last year. That’s the word from the Chung Hua Institution for Economic Research (CIER) on Monday.
According to the local think tank, Taiwan's purchasing managers index (PMI) edged up 0.9 percentage points to 50.1 in December. A reading above 50 signals expansion in manufacturing activity while a reading of below 50 indicates contraction. Taiwan’s PMI figures dipped below 50 between August and November, 2014. CIER said that although the figures are now above 50, the manufacturing sector is still stagnating because the numbers are still below 50 after seasonal adjustment.
Three of the five sub-indices expanded in December, including those for new orders, production, and employment. But supplier deliveries declined for the third consecutive month and hit a record low since August, 2013, a sign that buyers now have an advantage in price negotiations. The index for inventories also fell after eleven months of expansion.
However, CIER says that with the rebound in the Eurozone and the United States, Taiwan’s PMI is likely to see further improvement.