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Financial News: Taiwan Manufacturing Activity At 7-1/2-Year Low

Taiwan Manufacturing Activity At 7-1/2-Year Low

07/01/2019 - 04:03:00 (RTTNews)

(RTTNews) - Taiwan's manufacturing activity fell to the weakest level in seven-and-a-half years, survey figures from IHS Markit showed on Monday.

The headline Nikkei Taiwan purchasing managers' index, or PMI, fell to 45.5 in June from 48.4 in May. Any reading below 50 indicates a contraction in the sector.

New business declined at the steepest rate in four years. New exports fell at the second-quickest pace and depletion in backlogs of works were the quickest since November 2011.

Staffing levels decreased at the quickest pace since July 2012 as production requirement lowered.

Purchasing activity declined with reduction in inflow of new works, contracting to the weakest in seven-and-a-half years.

Input cost decline to the lowest rate since February 2016 with a decrease in price of raw materials. Firms cut selling prices to remain competitive.

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