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Taiwan NMI contracts in January

Taiwan NMI contracts in January

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

The local NMI for January dropped 1.2 points from a month earlier to 48.8, the think thank said.

The figure is lower than the PMI, which stood at 51.3 in January, an increase of 4.7 points from December.

A reading of above 50 indicates expansion, while a figure below 50 signals contraction.

Steve Lai, executive director of the Supply Management Institute, said it is rare for the NMI to fare more poorly than the PMI.

In the United States, for example, the NMI is usually 3-5 points higher than the PMI, Lai said.

In January, four of the eight sectors in the NMI showed expansion: transportation and warehousing (58.8); the restaurant and hotel sector (53.6); the financial and insurance sector (53.6); and education and science (52.7), the CIER said.

The three sectors that contracted were the retail sector (44.3); property (46.5); and information and communications (47.2).

The wholesale sector remained flat at 50.

Non-manufacturers were generally pessimistic in January toward business prospects, with the six-month outlook index falling 1.2 points from a month earlier to 27.9, showing contraction for the eighth consecutive month.

Among the eight sectors, the property industry was the most pessimistic, with its six-month outlook index standing at just 18.1.


Updated : 2021-06-23 20:54 GMT+08:00