TAIPEI (Taiwan News) — Chung-Hua Institution Economic Research said Thursday that Taiwan’s December purchasing managers’ index (PMI) was 50.8, down 0.6 from last month.

CIER said in a press release the drop was mainly due to unclear end-user demand, resulting in production indices and orders slowing down. The manufacturing sector grew, albeit at a slower rate, reported CNA.

PMI shows the prevailing trends in the manufacturing sector. An index above 50 indicates expansion whereas below 50 signals contraction.

CIER President Lien Hsien-ming (連賢明) said the index reflects three points. First, the overall market lacks change, leading to a flat trend. 

Second, peak season is underwhelming, with Q4 to see short-term orders rather than long-term ones. Third, the political landscape will only become clearer after US President-elect Donald Trump takes office on Jan. 20.

Additionally, CIER released its non-manufacturing index for December, which rose by 1.9 points to 56.5%, marking 26 consecutive months of expansion.

The institute said business activity and new orders indices climbed to their fastest rates since July. However, the outlook index calmed down due to a cooling housing market.