FX.co ★ Taiwan Factory Growth Steepest Since 2021

The S&P Global Taiwan Manufacturing PMI climbed to 56.1 in May 2026 from 55.3 in April, marking the strongest expansion since August 2021. This acceleration was underpinned by the sharpest increase in output since July 2021, driven by firmer demand and stockpiling in response to supply disruptions associated with the Middle East conflict. New orders grew at a joint-fastest pace since July 2021, while export orders continued to rise on stronger demand from the US, Europe, Japan, and China. Purchasing activity expanded at the second-fastest rate since November 2021, even as supplier delivery times lengthened to their greatest extent since March 2022 amid shipping delays and material shortages. Work backlogs rose markedly, though overall employment remained broadly stable. Input cost inflation stayed among the strongest on record, prompting firms to further raise their selling prices. At the same time, business confidence reached a two-year high, supported by expectations of stronger demand from the electronics and AI industries.