• Directory of Taiwan

Taiwan’s PMI reaches 2020 record in August, indicating economic revival

Caution still necessary as coronavirus pandemic continues to evolve: CIER

Taiwan's economy was improving in August, according to CIER 

Taiwan's economy was improving in August, according to CIER  (CNA photo)

TAIPEI (Taiwan News) — The Purchasing Managers’ Index (PMI) reached its highest point for the year in August, indicating a revival of the economy, a leading think tank said Tuesday (Sept. 1).

In the PMI survey, purchasing managers are asked for factual data about output, new orders, pricing, and employment, which reflect the state of the economy better than answers about plans and expectations, according to economists.

The Chung-Hua Institution for Economic Research (CIER) found that Taiwan’s PMI for August had surged to 56 percent, a sign the economy was expanding for the first time since the Wuhan coronavirus (COVID-19) pandemic started, CNA reported. According to the calculation methods for the index, a figure above 50 percent signals expansion; one below 50 percent reveals contraction.

Taiwan’s economy is leaving its poor second quarter behind but it is still too early to speak of recovery because the pandemic situation is still evolving, CIER said. In the non-manufacturing sector, the improvement is still more marked, as the government-issued "Triple Stimulus Vouchers" have been helping boost domestic consumption.