Taiwan’s manufacturing sector grows for ten straight months
Taiwan’s manufacturing sector expanded in December, marking ten consecutive months of growth as the country’s domestic economy begins to show signs of recovery.
According to the the Chung-Hua Institution for Economic Research (CIER) the purchasing managers index (PMI) fell 1.4 points in December from the previous month to 55.9 points. But it did remain above the 50 point threshold, which shows that the sector is still on an expansionary footing.
CIER also noted that the non-manufacturing sector also showed expansion in December, rising 1.5 points from a month earlier to 51.3.
CIER president Wu Chung-shu said that both sectors are set for continued growth in 2017. In December, the sub-PMI index for suppliers' deliveries rose 0.1 from a month earlier to 56.1, while the sub-PMI index for inventories remained at 53.2, the TIER data showed. The sub-PMI indexes for new orders, employment, and production fell 4.0, 2.2 and 0.9, respectively from a month earlier to 57.3, 53.4 and 59.5, according to the data.
Across the industries that make up the the PMI, the sub-index for the electricity/machinery sector remained unchanged from November, while other five -- chemical/biotech, food/textile, infrastructure/raw materials, transportation, and electronics/optoelectronics fell.
The consistent growth of Taiwan’s manufacturing sector is promising, given the current state of its economy. But that isn’t the whole story. Given recent limitations on working hours, manufacturers face the challenge of increased operating costs; coupled with Donald Trump’s rhetoric on returning jobs to America, it is far from plain sailing for the industry.
SOURCE: [Focus Taiwan]
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