The S&P Global Taiwan Manufacturing PMI increased to 51.7 in January 2026, up from 50.9 in December. This marks the second successive month of growth in manufacturing activity, achieving the highest level since December 2024. The growth in total new business reached its quickest rate in 11 months due to enhanced customer demand domestically and internationally. New export orders experienced an uptick at the beginning of 2026, driven by strong demand from regions including Europe, Mainland China, the United States, and Japan. In light of increased backlogs, companies sought to boost their operational capacities by hiring more staff for the second time in three months. Inflationary pressures heightened, with both input costs and selling prices escalating at their fastest rates since mid-2022. Despite optimism for sustained demand, firms anticipate a weakening of conditions over the upcoming 12 months.