Taiwan Manufacturing Expands Most in Five Years

The S&P Global Taiwan Manufacturing PMI rose to 56.7 in September 2026 from 54.7 in August, marking its strongest reading since August 2021. Output and new orders expanded at their fastest rates in over five years, supported by stronger domestic and overseas demand, particularly for AI-related products. Export orders also increased at the quickest pace since July 2021. Employment growth remained modest despite strengthening to its fastest pace since February, while backlogs accumulated at a rapid rate. Purchasing activity accelerated, but supplier shortages led to a sharper deterioration in delivery times. Input cost inflation quickened to one of its highest rates since early 2022, driven by higher raw material costs, including metals and AI-related hardware, while output price inflation accelerated to its fastest pace since June. Business confidence rose to its highest since February, supported by expectations of sustained demand, particularly for AI-related products.

The S&P Global Taiwan Manufacturing PMI edged down to 54.7 in August 2026 from 55.1 in July, marking its softest reading in five months but remaining firmly in expansion territory. Output increased for the ninth consecutive month, while new orders rose at a rapid pace despite moderating from July. New export orders expanded at a faster rate, supported by stronger demand from key markets including the US, Europe, mainland China, Japan, India and Southeast Asia. Employment increased only marginally for the second month in a row, contributing to a sharper accumulation of backlogs. Purchasing activity remained strong, although supplier shortages led to a deterioration in delivery times. Input cost inflation accelerated for the first time in four months, driven by higher raw material prices and stronger demand for AI-related products, while output price inflation eased to a six-month low. Business confidence improved from July's three-month low, on expectations of sustained market demand..

The S&P Global Taiwan Manufacturing PMI edged down to 55.1 in July 2026 from 55.2 in the previous month, marking its weakest reading since March. However, it remained firmly in expansion territory for an eighth consecutive month, as output increased for the eighth straight month and remained above its long-run average. Moreover, new export orders expanded for a seventh month running, although the pace of growth softened slightly from the previous month. In the labor market, Taiwanese manufacturers returned to hiring for the first time since February, though employment growth was only marginal. On the price front, input cost inflation eased to its weakest level since January, while output charge inflation slowed to a five-month low, indicating a moderation in pricing pressures. Looking ahead, Taiwanese manufacturers remained optimistic about the outlook for production over the next 12 months, though still slipped to its lowest level since April.