FX.co ★ Taiwan Manufacturing PMI Drops at Softer Pace

The S&P Global Taiwan Manufacturing PMI experienced a slight increase to 48.6 in May 2025, up from 47.8 in April. This statistic indicates that the manufacturing sector contracted for the third month in a row, though the rate of contraction has slowed. Respondents frequently cited the negative effects of U.S. tariffs and market uncertainty on demand. In May, overall new orders continued to decline, albeit at a more moderate rate compared to April, while new export orders plummeted at their fastest pace in seventeen months. In anticipation of diminished production needs, companies reduced both their input purchases and staffing levels. The softer demand conditions led manufacturers to reduce their selling prices at the quickest rate observed in nearly two years. This trend was facilitated by a renewed decrease in input costs, marking the first decline since July 2023. Looking into the future, Taiwanese manufacturers remain pessimistic about output over the next 12 months, reflecting a second consecutive month of negative sentiment.