FX.co ★ Taiwan Manufacturing Downturn Deepens

The S&P Global Taiwan Manufacturing PMI decreased to 46.8 in September 2025 from 47.4 in August, indicating a more pronounced and substantial worsening in business conditions, marking the seventh consecutive month of decline. Both production and new orders experienced sharper contractions, with demand from the US, Europe, Japan, and China dropping amid subdued global demand and ongoing trade policy uncertainties. New export orders fell at one of the steepest rates observed in the last two years, prompting companies to scale back purchasing activities and reduce inventory levels. Employment saw its thirteenth consecutive monthly decline, highlighting excess capacity and diminished workloads. In terms of pricing, input cost inflation spiked to its highest level in 2025, driven by increased raw material costs, although manufacturers mostly maintained stable selling prices in an effort to attract new business. Looking forward, the outlook remained pessimistic, with confidence regarding future output among the weakest recorded in the past two years, primarily due to concerns over global demand.