FX.co ★ Taiwan Manufacturing Contraction Deepens

In June 2025, the S&P Global Taiwan Manufacturing PMI decreased to 47.2 from 48.6 recorded in May. This indicates the sharpest decline in manufacturing activity since December 2023. The downturn was driven by a decrease in output, which fell at the fastest rate since that time due to diminished demand and a lower volume of new orders. On the employment front, job numbers continued to decline as companies responded to reduced new work inflows and implemented cost-cutting strategies. The rate of job losses remained steady, showing only a slight change from May. Input prices experienced a modest rise, primarily due to increased raw material costs. Conversely, output prices dropped for the fourth consecutive month as companies engaged in price negotiations with customers and attempted to boost sales. Looking forward, manufacturers have maintained a pessimistic outlook for the third consecutive month, highlighting ongoing uncertainties related to US tariffs and the broader global trade landscape.