Taipei, Nov. 1 (CNA) Manufacturing activity in Taiwan remained in contraction mode for the eighth consecutive month in October as an index gauging the sector's fundamentals dropped slightly from a month earlier, the Chung-Hua Institution for Economic Research (CIER) said Wednesday.The purchasing managers' index (PMI) fell 1.1 points from a month earlier to 47.1 in October, remaining in contraction mode, according to data compiled by CIER, one of Taiwan's leading economic think tanks.The non-manufacturing index (NMI), which covers the service sector, dropped by 0.3 points from a month earlier to 53.2, but the figure indicated the sector remains in expansion mode for the 12th month in a row, the data showed.For the PMI and NMI, readings above 50 indicate expansion, while those below 50 represent contraction.According to the CIER, the decline in the October PMI was mainly the result of a decrease in the sub-index for new orders, which moved lower by 3.4 points from a month earlier to 48.3, and for production, which dropped 3.5 points from a month earlier to 49.4. This indicates the two sectors returned to contraction after ending two-months of contraction and shifting into expansion mode in September.CIER President Yeh Chun-hsien (葉俊顯) said that the global economic outlook is still uncertain amid concerns over high inflation, increasing interest rates, the trade ban newly imposed by the United States on artificial intelligence (AI) chip sales to China, and the specter of a wider conflict in the Middle East.While geopolitical disturbances did not have a substantial impact on Taiwan's manufacturing industry, mounting uncertainties may weigh on domestic demand prospects and make manufacturers turn more cautious, Yeh added.Meanwhile, the sub-index for business outlook over the next six months moved lower by 4.9 points from a month earlier to 39.8 in October, remaining in contraction mode for the 18th consecutive month, according to CIER.CIER economist Chen Hsin-hui (陳馨蕙) said that as businesses in the manufacturing sector have a conservative outlook, many manufacturers have shifted from a forecasting approach to a more short-term nowcasting model to make decisions on production planning, inventory management and procurement in real-time.Noting that the PMI rose in September but fell again in October, Yeh said this signals Taiwan's manufacturing sector requires global economic recovery to help boost its comeback momentum.However, Academia Sinica economist Kamhon Kan (簡錦漢) said that currently, the world economy is mainly dependent on the United States and even though its service sector delivered a brilliant performance in the third quarter of this year, its manufacturing sector remains weak. Under such circumstances, Taiwan's manufacturing sector is remaining sluggish, Kan added.As for the domestic service sector, Yeh said the outlook for enterprises dependent on domestic demand in the fourth quarter is bright as it is the peak season for tourism, exhibition and conference industries and shopping, but relatively weak external demand can be expected for related businesses.(By Pan Tzu-yu and Evelyn Kao)Enditem/AW (ICE TAIPEI)

Fonte notizia: Organi di Stampa - Focus Taiwan News Channel