Taiwan Factory Growth Steepest Since 2021

2026-06-01 00:42 By Kyrie Dichosa 1 min. read

The S&P Global Taiwan Manufacturing PMI rose to 56.1 in May 2026 from 55.3 in April, signaling the strongest expansion since August 2021.

The increase was driven by the steepest rise in output since July 2021, supported by stronger demand and stockpiling efforts amid supply disruptions linked to the Middle East conflict.

New orders expanded at a joint-fastest pace since July 2021, while export orders continued to rise on stronger demand from the US, Europe, Japan, and China.

Purchasing activity increased at the second-fastest rate since November 2021, while supplier delivery times deteriorated the most since March 2022 due to shipping delays and material shortages.

Backlogs of work rose sharply, though employment was broadly unchanged.

Input cost inflation remained among the strongest on record, prompting firms to raise selling prices further.

Meanwhile, business optimism climbed to a two-year high, supported by expectations of stronger demand from the electronics and AI sectors.



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Taiwan Factory Growth Steepest Since 2021
The S&P Global Taiwan Manufacturing PMI rose to 56.1 in May 2026 from 55.3 in April, signaling the strongest expansion since August 2021. The increase was driven by the steepest rise in output since July 2021, supported by stronger demand and stockpiling efforts amid supply disruptions linked to the Middle East conflict. New orders expanded at a joint-fastest pace since July 2021, while export orders continued to rise on stronger demand from the US, Europe, Japan, and China. Purchasing activity increased at the second-fastest rate since November 2021, while supplier delivery times deteriorated the most since March 2022 due to shipping delays and material shortages. Backlogs of work rose sharply, though employment was broadly unchanged. Input cost inflation remained among the strongest on record, prompting firms to raise selling prices further. Meanwhile, business optimism climbed to a two-year high, supported by expectations of stronger demand from the electronics and AI sectors.
2026-06-01
Taiwan Manufacturing Growth Strongest Since 2021
The S&P Global Taiwan Manufacturing PMI increased to 55.3 in April 2026 from 53.3 in March, marking the fifth consecutive month of expansion in the sector. The latest reading also marked the fastest growth in factory activity since December 2021, supported by a faster rise in output and new orders. Total new business increased at the second-sharpest pace since July 2021, while new export orders rose at the second-fastest pace since early 2022. Although output and sales continued to rise, firms recorded a further decline in staffing levels, with job losses remaining marginal. Supplier performance deteriorated further due to disruptions. On prices, input cost inflation accelerated to the fastest pace since the survey began 22 years ago amid supplier price hikes. As a result, selling prices rose more quickly as firms passed on higher costs to clients. Finally, sentiment weakened to a three-month low as firms remained cautious about their forecasts amid the Middle East conflict.
2026-05-04
Taiwan Manufacturing Growth Slows
The S&P Global Taiwan Manufacturing PMI fell to 53.3 in March 2026 from 55.2 in February, signaling a slower yet still solid improvement in the sector. Output and new orders rose at softer rates, though both remained above long-term averages, supported by strong domestic and overseas demand, particularly for semiconductors and AI-related products. New export business also expanded at a solid pace. Purchasing activity increased for the fourth month, while stocks of purchases rose modestly. Meanwhile, rising input costs from higher raw material and energy prices amid the war in the Middle East drove the sharpest increase in output charges since June 2022. Supplier performance deteriorated at the fastest pace since May 2022, while employment fell marginally for the first time in three months. Despite these pressures, manufacturers remained optimistic, with sentiment near February’s 21-month high, reflecting expectations of continued strong global demand over the next year.
2026-04-01