Taiwan's manufacturing sector has experienced a mild slowdown at the outset of the year, as the S&P Global Manufacturing Purchasing Managers' Index (PMI) decreased to 51.10 in January 2025, according to data updated on February 3, 2025. This marks a dip from the previous PMI reading of 52.70 recorded in December 2024.
A PMI above 50.0 generally indicates expansion in the manufacturing sector, while a number below implies contraction. Though the latest figure still signifies growth, the deceleration underscores waning momentum in Taiwan's manufacturing activity.
The change in PMI suggests that manufacturers in Taiwan are facing headwinds as they start the new year. Such fluctuations often reflect shifts in production, new export orders, and inventory levels. The January results will be watched closely by economists and investors to gauge how persistent this easing trend might be and its potential implications for economic forecasts and industrial growth strategies.
