The IHS Markit Taiwan Manufacturing rose to 50.8 in December 2019 from 49.8 in a month earlier. This was the first growth in factory activity since September, supported by a renewed increase in total new work, purchasing activity and staffing levels. Meantime, output volumes were broadly stable. At the same time, export sales fell further, amid weak demand from China, Europe and the US. Meanwhile, capacity pressures were evident, as shown by a renewed rise in backlogs of work. Though modest, the rate of accumulation was the fastest seen since August 2018. Regarding inflation, input costs rose the most since March, with a number of panel members citing increased prices for raw materials. Despite the stronger rise in cost burdens, companies continued to cut their factory gate prices in order to remain competitive. Lastly, sentiment was at four-month high, partly linked to new product releases, efforts to expand client bases and hopes that trade tensions will ease. Manufacturing PMI in Taiwan averaged 51.22 points from 2011 until 2019, reaching an all time high of 56.90 points in January of 2018 and a record low of 45.50 points in June of 2019. source: Markit Economics
Manufacturing PMI in Taiwan is expected to be 49.50 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in Taiwan to stand at 49.10 in 12 months time. In the long-term, the Taiwan Manufacturing PMI is projected to trend around 49.80 points in 2020, according to our econometric models.