The Purchasing Managers Index (PMI) has contracted for four months in a row. That’s according to a report out Monday by the Chung-hua Institution for Economic Research (CIER).
The PMI is an indicator of the health of the manufacturing sector. A reading of over 50 indicates growth while under 50 means contraction from the previous month.
The CIER report says Taiwan’s PMI in October dropped 0.1 percentage point from the previous month to 46%.
The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. All five contracted in October.
Of the six major manufacturing industries, only the chemical, biotechnological and medical industries expanded. Other industries such basic materials, electrical and machinery equipment, transportation equipment, foods and textiles, as well as the electronic and optical industry, all contracted.