Taipei: Taiwan's manufacturing sector continued to expand in June, with the purchasing managers' index (PMI) at 60.7 points, marking the ninth straight month of growth despite a slight slowdown, as reported by the Chung-Hua Institution for Economic Research (CIER).
According to Focus Taiwan, the June PMI, which gauges the manufacturing sector's performance, fell 0.7 points from 61.4 in May, with slower expansion in supplier delivery times and inventories driving the moderation, CIER President Lien Hsien-ming explained during a press conference.
PMI readings above 50 signal expansion, while those below 50 indicate contraction. In June, all six major manufacturing industries showed expansion in their unadjusted PMI. Ranked by pace, electronics and optics led with 66.1 points, followed by electrical and machinery equipment (60.2), transportation equipment (57.6), food and textiles (57.0), basic materials (52.7), and chemical and biomedical industries (50.9).
The data indicated that although the index slipped, it remained at a relatively high level, with expansion still proceeding at a rapid pace, driven by strong global demand for artificial intelligence (AI) supply chains, Lien stated.
Meanwhile, Kamhon Kan, a researcher at the CIER's economic division, cautioned that the issue of "AI inflation" must be watched closely. If surging AI demand drives up raw material prices, consumers could bear the cost of the boom, with reports suggesting the price of the iPhone 18 could rise by up to 30 percent, Kan noted.
In the service sector, the Non-Manufacturing Index (NMI) rose 1.7 points in June to 59.9, marking the fastest pace of expansion since December 2021. All eight major service industries reported expansion in their outlook, led by retail (72.5 points), accommodation and food services (70.8), education and professional/scientific services (67.1), finance and insurance (65.4), and construction and real estate (60.9). Each sector posted future outlooks above 60 points and signaled strong growth momentum, according to the data.