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Taiwan PMI returns to expansion in January

Taiwan PMI returns to expansion in January

Taiwan's manufacturing purchasing managers index (PMI) began expanding again in January after six months of contraction, according to a report released by the Chung-Hua Institution for Economic Research (CIER) Monday.

The local PMI index for January rose 4.7 points from a month earlier to 51.3, the think tank said.

A PMI reading of above 50 indicates expansion in manufacturing activity, while a figure below 50 signals contraction.

Among the six manufacturing sub-sectors covered by the PMI, four expanded in January: food and textiles (60); transportation equipment (53.7); the chemical, biological and medical industry (51.8); and electronics and optoelectronics (50.7).

The two sub-sectors that showed contraction were basic materials (49.1); and electrical and machinery equipment (49.8).

Of the five PMI sub-indexes, new orders, production and supplier deliveries showed expansion in January, while inventories and employment showed contraction.

(By Tsai Yi-chu and Y.F. Low)