Taiwan Manufacturing Growth Accelerates

The S&P Global Taiwan Manufacturing PMI rose to 55.2 in February 2026 from 51.7 in January. This was the third consecutive month of growth and the most pronounced since December 2021. Robust global demand drove the sharpest increases in output and new orders in over four-and-a-half years, prompting firms to boost both purchasing activity and inventory levels at faster rates. Employment also grew modestly, representing the strongest increase in staff numbers in nearly three-and-a-half years. However, backlogs accumulated at the quickest pace since August 2021. On the price front, input costs rose at the sharpest pace since April 2022, linked to higher prices for raw materials, while output charge inflation accelerated to its highest since mid-2022. Lastly, business confidence strengthened to a 21-month high amid hopes that global demand conditions will continue to improve in the coming months.

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.