The semiconductor powerhouse posted a manufacturing purchasing managers index of 50.2 last month, up from 49.3 in March. — Bloomberg
Taipei: Taiwan’s factory activity expanded for the first time in two years, leading a broad rebound in Asia.
The semiconductor powerhouse posted a manufacturing purchasing managers index (PMI) of 50.2 last month, up from 49.3 in March and posting its best result since April 2022, according to data published yesterday by S&P Global.
A reading above 50 indicates expansion, while anything below shows contraction.
Taiwan ramped up output amid higher new orders, with companies reporting improved demand from the domestic market, S&P said, although it was careful in declaring a turnaround.
Taiwan’s firms remained “understandably somewhat cautious” in their buying activity, opting instead to utilise inventories while customer demand was fragile, it said.
“That said, companies are confident that growth will pick up and were sufficiently optimistic to add to their staffing levels for the third time in the past four months,” Paul Smith, economics director at S&P Global Market Intelligence, said in a statement.
The latest data show that Asia may have finally found steadier footing after its economies had to grapple with Red Sea supply chain disruptions, along with rising food and fuel costs and high interest rates.
There are reasons for optimism across North Asia.
China’s recovery seems to be gaining ground as it posted consecutive months of growing factory activity.
Its official PMI stayed above the 50 reading although it eased slightly to 50.4 in April, while a private gauge that tracks smaller and more export-oriented firms was even higher at 51.4, according to data Tuesday.
Japan also inched closer to the 50 mark that separates expansion and contraction, signalling its factory activity may soon exit a year-long slump.
Its PMI climbed to 49.6 in April, its highest reading since August, au Jibun Bank’s survey showed on Wednesday.
Neighbouring South Korea, however, pulled back slightly, with a PMI of 49.4 last month from 49.8 in March, the country’s statistics office reported yesterday. — Bloomberg
