The S&P Global Taiwan Manufacturing PMI slipped to 54.7 in August 2026 from 55.1 in July, its weakest reading in five months yet still comfortably in expansionary territory. Output rose for the ninth consecutive month, and while growth in new orders eased from July’s pace, it remained robust. New export orders accelerated, supported by stronger demand from major markets including the US, Europe, mainland China, Japan, India, and Southeast Asia.
Employment increased only marginally for a second straight month, contributing to a more pronounced buildup of backlogs. Purchasing activity stayed strong, but supplier shortages resulted in longer delivery times. Input cost inflation picked up for the first time in four months, driven by higher raw material prices and firmer demand for AI-related products. In contrast, output price inflation slowed to a six-month low. Business confidence strengthened from July’s three-month low, underpinned by expectations of sustained market demand.
