The official manufacturing purchasing managers’ index (PMI) last month gained 2.7 points to 48.2, indicating that operating conditions remained weak altthough order visibility and industrial production improved, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday.
“Some sectors saw their business return to the positive zone, thanks to rush orders linked to artificial intelligence applications,” CIER president Yeh Chun-hsien (葉俊顯) told reporters.
Firms largely remain conservative due to tepid end-market demand and expect a recovery next year until the Lunar New Year, Yeh said.
Photo: Hsu Tzu-ling, Taipei Times
PMI data aim to capture manufacturing industry health, with scores of 50 and higher indicating expansion and scores lower than the threshold suggesting a contraction. The crucial economic indicator has contracted for seven months in a row.
The sub-index on new business orders rallied 5.1 points from one month earlier to 51.7, while the gauge on industrial production picked up 6.2 points to 52.9, returning to positive territory, the monthly report said.
Rush orders benefited firms that make chemical, biotechnology, electronic, optical, food and textile products, as well as transportation tools, Yeh said, adding that the improvement failed to extend to suppliers of raw materials, and electrical and machinery equipment.
The launches of next-generation technology gadgets lent support to inventory rebuilding demand as the holiday season in the West draws near, accounting for the uneven recovery, the academic said.
The readings on inventory and customers’ inventory both shed 0.4 points to 45.4 and 44.1 respectively, the think tank said.
The sub-index on employment increased a slight 0.6 points, indicating that firms hesitated to raise headcounts, and would rather take a cautious approach for fear that the improvement would be short-lived, it said.
The measure on raw material prices grew 5.5 points to 58.7, as oil exporters cut supply to bolster prices, explaining why firms were afraid to pass on cost hikes, it said.
The six-month business outlook sub-index advanced 2.6 points to 44.7, given that only firms in the chemical, biotechnology and food sectors are upbeat about order visibility, the report showed.
The non-manufacturing index last month printed 53.5, expanding for an 11th straight month, but weakening 0.8 points from one month earlier, CIER said.
Yeh linked the mild signs of a slowdown to stock price corrections and outbound travel growing faster than domestic tourism.
Demand remains healthy for most service sectors and upcoming holidays might fuel growth momentum, he said.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS