Taiwan Manufacturing PMI at 8-Month High

The S&P Global Taiwan Manufacturing PMI rose to 51.7 in January 2026 from 50.9 in December, marking a second consecutive monthly improvement in manufacturing activity and the highest level since December 2024. Total new business expanded at its fastest pace in 11 months, supported by stronger customer demand both domestically and overseas. New export orders also rose at the start of 2026 amid robust demand from Europe, Mainland China, the US and Japan. In response to higher backlogs, firms sought to expand operational capacity by raising staffing levels for the second time in the past three months. Inflationary pressures intensified, with both input costs and selling prices rising at the fastest rates since mid-2022. Despite hopes for continued demand, firms expect conditions to weaken over the next 12 months.

The S&P Global Taiwan Manufacturing PMI rose to 50.9 in December 2025 from 48.8 in November, returning operating conditions to growth for the first time since February. Output and new orders both increased for the first time since March, as firms reported firmer demand conditions and stabilisation in overseas sales, despite still-sluggish global economic conditions. Production volumes rose modestly, while purchasing activity and inventories also expanded, reflecting expectations of stronger sales ahead. Meanwhile, employment edged lower as manufacturers remained cautious on hiring amid rising cost pressures. On the cost side, input prices climbed at the fastest pace in around 17 months amid higher raw material costs and supplier shortages, while selling prices increased only modestly due to limited pricing power. Business confidence improved further, with optimism about output for the year ahead reaching its highest level since March.

The S&P Global Taiwan Manufacturing PMI rose to 48.8 in November 2025, improving from 47.7 in the previous month. This marked the highest reading since March, as output declined at the slowest pace since May. The contraction in new business also eased, with total sales falling at the slowest rate in the current eight-month period of decline, as firms reported relative improvements in key export markets despite generally sluggish demand conditions. Moreover, employment increased slightly, ending a fourteen-month period of job reductions amid expectations of stronger customer demand in the coming months. On the price front, operating expenses rose to a sixteen-month high, resulting in output charges reaching an eleven-month high. Looking ahead, manufacturers expressed renewed optimism regarding output for the year ahead for the first time since March, although overall sentiment remained historically subdued.