FX.co ★ Taiwan Manufacturing Growth Remains Strong

The S&P Global Taiwan Manufacturing PMI slipped to 55.2 in June 2026 from 56.1 in May, but continued to signal robust expansion in the sector. Output grew at its fastest pace since July 2021, supported by a surge in new orders and precautionary stockpiling in response to supply disruptions linked to conflict in the Middle East and expectations of higher prices. New export orders rose at the second-strongest rate since January 2022, underpinned by solid demand from the US, Europe, and Japan. Purchasing activity expanded, and inventories of finished goods increased at the second-fastest pace since 2011. Supplier delivery times lengthened further amid ongoing shipping disruptions, though delays were slightly less severe than in May. Input costs continued to rise sharply, albeit at a slower rate, prompting firms to raise selling prices. Employment fell for a fourth consecutive month, while backlogs of work increased at one of the quickest rates since early 2022. Business confidence climbed to near a two-year high, supported by strong demand for AI-related products and semiconductors, although persistent cost pressures and geopolitical risks continued to temper overall sentiment.