Taiwan’s Purchasing Managers Index (PMI) and Non-Manufacturing Index (NMI) are at new lows. That was the word from the Chung-Hua Institution for Economic Research (CIER) on Wednesday. In August, the PMI slipped 3.6 points to 45% and the NMI slipped 4.6 points to 47.5%. A figure below 50 indicates a decline.
The institute’s president Wu Chung-shu said that the decline in PMI does not necessarily indicate a recession. However, Wu also said that the data tells policymakers that they must plan more carefully for the future.
Wu said manufacturing and other sectors have grown more pessimistic in their outlook for the economy in the next 6 months.
In August, China’s PMI went down to 49.7%, a three year low. Wu said that Taiwan relies heavily on exports so China’s economy will have a big impact on Taiwan. But he also noted that the US’s PMI is over 50, which shows that there are bright spots in the global market.