FX.co ★ Taiwan Manufacturing Activity Falls to Near Two-Year Low

In July, Taiwan's manufacturing sector experienced a further contraction, with the S&P Global Manufacturing PMI falling to 46.2 from 47.2 in June—marking the sharpest drop since August 2023 and the fifth consecutive month of decline. The downturn was primarily attributed to diminished sales, as both overall new business and export orders declined at the quickest rate seen in nearly two years, largely due to ongoing uncertainties surrounding US trade policies. In response, manufacturers reduced their purchasing activities and cut back on staffing. Business confidence plunged to its lowest level in two and a half years. While input costs saw a slight increase, manufacturers reduced their selling prices marginally to entice new business.