Taipei: Taiwan's manufacturing activity showed improvement in April driven by robust global demand for semiconductors and electronic components, as reported by the Chung-Hua Institution for Economic Research (CIER) on Monday. The April purchasing managers' index (PMI), a measure of the manufacturing sector's climate, increased by 4.9 points from the previous month to reach 60.3, marking the seventh consecutive month of expansion, according to data from CIER, a prominent economic think tank in Taiwan. According to Focus Taiwan, the service sector's nonmanufacturing index (NMI) also saw a rise of 4.0 points from the previous month, reaching 58.3 in April, marking the 14th consecutive month of growth. PMI and NMI readings above 50 signify expansion, while those below 50 indicate contraction. The PMI's rise was attributed to the growing demand for AI-related devices and manufacturers increasing inventories to mitigate potential price hikes in petrochemical products due to military conflicts in the Middle East. All five major factors of the April PMI showed improvement from the previous month. Sub-indexes for new orders, production, employment, supplier deliveries, and inventories increased by 6.4, 9.1, 3.5, 4.3, and 1.0 points, respectively, from March to 58.5, 57.4, 54.6, 70.6, and 60.4. Additionally, the business outlook sub-index for the next six months rose by 2.9 points from the previous month to 63.9 in April. While the overall PMI increased, the index's six major industries showed varied conditions in April but remained in expansion mode. The sub-indexes for the chemical/biotech and electronics/optoelectronics industries decreased, whereas those for the food/textile, basic raw materials, transportation tools, and electricity/machinery equipment sectors increased. Regarding the NMI, the four major factors-business activity, new orders, employment, and supplier deliveries-each rose by 6.4, 3.2, 2.9, and 3.3 points, respectively, from the previous month to 60.6, 60.2, 54.7, and 57.6 in April. The business out look sub-index for the next six months also increased by 4.3 points to 56.7 in April. The CIER noted that demand for services from upscale clients in the manufacturing sector remained strong, and consumer spending increased in anticipation of Mother's Day, further boosting the service sector in April.
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