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December PMI edges higher, points to growth

December PMI edges higher, points to growth

Taipei, Jan. 5 (CNA) Taiwan's purchasing managers' index (PMI) rose 0.9 points to 50.1 in December 2014, prompted by growth in new orders and production, the Chung-Hua Institution for Economic Research (CIER) said Monday. The finding of the latest survey, which is used to gauge the health of the country's manufacturing sectors, was significant because a PMI reading above 50 indicates an expansion in manufacturing activity while a figure below 50 indicates a contraction. Of the five sub-indexes that comprise the monthly PMI survey, those for new orders, production and employment all turned from contraction to expansion in December, according to CIER data. The sub-index of suppliers' lead times was below 50 for the third month in a row while that for inventory levels turned from expansion to contraction, the think tank said. The data also showed that three of six major manufacturing sectors followed by the survey enjoyed expansion last month. The transportation equipment sector had the highest reading of 61.9, followed by the food and textile sector at 57.1 and the electrical and machinery equipment sector at 50.7. The PMI of the chemical, biological and medical sector stood at 48.8, that of the electronics and optical sector reached 48.6, and that of the basic materials sector was 48.4. Meanwhile, the manufacturers' economic outlook for the next six months surged 5.5 points to 49.8 percent but still indicated contraction for the third consecutive month, CIER data showed. CIER President Wu Chung-shu said strong growth in the United States is expected to provide a boost to the global economy, which is still experiencing a slow recovery due to sluggish growth in Europe, Japan and China. Economic conditions in 2015 will be highly unpredictable, the economist said, "but smartphones are expected to propel the expansion of the electronics supply chain and boost demand for cloud computing technologies." (By Chen Cheng-wei and Elizabeth Hsu)


Updated : 2021-09-26 00:46 GMT+08:00