FX.co ★ Taiwan Manufacturing Shrinks for 6th Month

The S&P Global Taiwan Manufacturing PMI experienced an uptick, rising to 47.4 in August from 46.2 in July. This improvement follows July's significant decline, the sharpest since August 2023. Despite this increase, it marked the sixth month in a row that the PMI has dropped, primarily due to lukewarm demand. Both domestic and international customer demand saw declines, with new export business decreasing at a slower, yet still considerable, rate, mainly influenced by US tariffs. As a result, companies are exercising caution in hiring new staff and purchasing inputs. Regarding pricing, selling prices have stabilized after five months of reductions. Looking forward, business sentiment has weakened amid ongoing uncertainties surrounding US tariffs and the broader global economic environment.