The purchasing managers index (PMI) for Taiwan's manufacturing sector edged lower in October but still signaled expansion for the eighth consecutive month, the Chung-hua Institution for Economic Research (CIER) said Tuesday.
The manufacturing sector's purchasing managers index (PMI) for October dropped 2.0 points from a month earlier to 54.5, but remained above 50, indicating continued expansion.
Scores below 50 signal contraction.
Taiwan's manufacturing PMI last fell below 50 in February, but its last prolonged stretch below 50 was from July to December 2015 when the country's economy posted negative economic growth.
The CIER, one of Taiwan's leading economic think tanks, said the non-manufacturing index (NMI) for October dropped 1.6 points to 49.4, snapping four straight months of expansion.
Wu Chung-shu (???), president of CIER, said the declines in the PMI and NMI did not reflect a serious downturn in the economy.
Economic indicators still show that Taiwan's manufacturing sector is making a steady recovery and performing reasonably well, while service sector activity was sluggish, Wu said.
The dramatic drop in Chinese visitors in recent months may be affecting the performance of non-manufacturing activity, he suggested.
Wu said Taiwan's situation was similar to that of other regional economies, noting that the recent economic performance of Singapore, Hong Kong and South Korea has been less than ideal, with South Korea in particularly facing serious challenges.
Wu also said Taiwan's economy will likely grow more than 1 percent this year in spite of concerns midway through the year that 1 percent growth might be unattainable.
Source: Focus Taiwan News Channel