Taiwan manufacturing expansion continues to shrink in November

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Taiwan's purchasing managers' index (PMI) for the manufacturing sector dropped by 0.5 points from October to 57.2 in November, a Taipei-based think tank said Friday.

Despite the drop, the manufacturing sector has expanded for 21 consecutive months, according to the Chung-Hua Institution for Economic Research.

A PMI above 50 indicates expansion, while below reflects contraction.

Three of the five major sub-indices saw drops compared with the previous month. The sub-index for new orders fell 3 points to 55.6. and production was down 0.2 points to 57.7. Employment also dipped, while the sub-index for supplier deliveries and inventories gained.

Meanwhile, the non-manufacturing index, a service sector indicator, edged up 0.4 points to 53.4 in November.

Manufacturing sector fixed-asset investment plunged 18 percent year-on-year to about 230 billion new Taiwan dollars (7.76 billion US dollars) last quarter, the first decline since the third quarter of 2015, and the lowest investment level for five quarters, the island's economic affairs authority said Thursday.

Taiwan Institute of Economic Research, another local think tank, expects the island's manufacturing sector to shift from sluggish growth in the third quarter to recession in the fourth quarter as the peak electronics productions season nears its end.

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Source(s): Xinhua News Agency