The nation’s Purchasing Managers Index (PMI) and Non-Manufacturing Index (NMI) show that the economy expanded in March. That’s the word from the Chung-Hua Institution for Economic Research (CIER).
March’s PMI index was 59%. A number over 50 indicates expansion .The NMI has expanded for the 8th month in a row and was at 53% in March. The strongest manufacturing sectors were electronics, optics, chemistry, and medical biotechnology while the education, financial, and insurance industries performed well among the non-manufacturing sectors.
The recent drought and water rationing are likely to affect manufacturing, but setbacks would only be temporary. The institute’s president Wu Chung-shu explains.
"Sometimes when some factories are affected, production will decrease and prices will rise," said Wu. "But when the production volume returns to normal, the demand will also go back to normal. That’s been our experience. As long as the global economy is growing and our domestic demand is pretty good, any losses will be made up for."
Most companies are optimistic about the economic outlook for the next 6 months. That includes 61% in the manufacturing sector and 57% in non-manufacturing sectors.