FX.co ★ Taiwan Manufacturing PMI Falls to 16-Month Low

The S&P Global Taiwan Manufacturing Purchasing Managers' Index (PMI) fell to 47.8 in April 2025, down from 49.8 in March. This indicates a second consecutive month of industry contraction and represents the lowest level seen since December 2023. The downturn is attributed to substantial declines in both production and new orders, as businesses encountered worsening global demand conditions. Consequently, manufacturers have curtailed their purchasing activities and decreased inventory levels. On a positive note, inflationary pressures have diminished, with input costs increasing at their slowest rate in over a year. Despite this, competitive pricing strategies and customer negotiations led to a significant reduction in output charges. Business confidence took a noticeable hit, with manufacturers expressing a pessimistic outlook for the next 12 months for the first time in a year and a half.