Taiwan's manufacturing continues to expand in November

Taipei, Dec. 1 (CNA) Taiwan's manufacturing activity continued to expand in November due to a price increase in electronics components and electric equipment as well as an improvement in employment, the Chung-Hua Institution for Economic Research (CIER) said on Monday.

Data compiled by CIER, one of the leading economic think tanks, showed the purchasing managers' index (PMI), which gauges the fundamentals of the manufacturing sector, rose by 1.1 from a month earlier to 51.4 in November, marking the second consecutive month of expansion.

In the service sector, the non-manufacturing index (NMI) rose 1.4 from a month earlier to 55.8 in November, also in expansion mode.

PMI and NMI readings above 50 indicate expansion, while those below 50 show contraction.

Among the five major factors of the November PMI, the subindexes on employment, supplier deliveries and inventories rose 4.7, 1.8 and 1.6, respectively, from a month earlier to 52.2, 54.4 and 48.6 in November, with only inventories in contraction, CIER said.

Bucking the uptrend, the subindexes on new orders and production fell 0.2 and 2.3, respectively, from a month earlier with both at 50.9 in November, but still in expansion mode, CIER added.

The subindex on the business outlook over the next six months rose 3.9 from a month earlier to 45.4, marking the eighth consecutive month of contraction. However, the index hit the highest level since Washington announced sweeping reciprocal tariffs in April.

By industry, the subindexes on the chemical/bio-tech, electronics/optoelectronics, food/textile and transportation equipment industries moved higher from a month earlier to 51.8, 52.2, 50.0, and 52.8, respectively, in November.

On the other hand, the subindexes on the basic raw materials and electricity and electric equipment industries moved lower to 43.6 and 50.2, respectively, in November.

Among the four major factors in the November NMI, the subindexes on business activities and new orders rose 2.9 and 5.3 respectively, from a month earlier, to 57.6 and 60.2, while the indexes on employment and supplier deliveries fell 2.6 and 0.1, respectively, to 52.1 and 53.2. The four were in expansion.

However, the subindex on the business outlook over the next six months stayed in contraction, while it rose 5.0 from a month earlier to 47.5 in November, according to CIER.