Taiwan's PMI Inches Down 0.4 to 58.2 in June

Taiwan's purchasing managers' index (PMI) posted at 58.2 in June, down 0.4 from a month earlier, but remained a healthy 58-plus for the fourth consecutive month, according to Chung-Hua Institution for Economic Research (CIER).

S. H. Lai, executive officer of Supply Management Institute Taiwan, says that a PMI ranging 55-60 is healthy, suggesting business expansion.

In the same month the business climate index for the next six months rose 3.1 from a month earlier to a new high of 68.4, showing strong confidence among enterprises towards the next six months.

In June the index of new orders from customers fell 2.7 to 59.6, but the level was still regarded as fast expansion. And the PMI of Taiwan's six leading industries all posted 50-plus in the month, with the electro-optical sector witnessing the highest PMI of 60.9. As for the business climate index, the electro-optical sector saw the index exceed 70 for the fifth consecutive month, suggesting high optimism towards the next six months for the sector.

Thanks to steady economic recovery, more than 60% of the polled manufacturers on the island believe in an improving business climate in Taiwan in  H2 over that in H1, with the  CIER noting Taiwan's economic growth to exceed 3% for the year. (JL)