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Taiwan's PMI takes positive turn in November (update)
Central News Agency
2013-12-02 02:07 PM
Taipei, Dec. 2 (CNA) Taiwan's manufacturing sector gained momentum in November, according to the latest purchasing managers index (PMI) compiled by the Chung-Hua Institution for Economic Research (CIER). The PMI rose to 52 in November, the first positive turn since March, when the index hit a high of 62.4, the Taipei-based think tank said on Monday.

A PMI above 50 indicates expansion in manufacturing activity, while a figure below 50 shows that manufacturing activity is contracting, according to the survey's methodology.

Local manufacturing is recovering, but like the global economy, its growth is moving at a slow pace, said CIER President Wu Chung-shu. "I hope the economy can pick up after this positive turn," Wu said, cautioning that the uplifting data covers only one month and that it will take more time before a trend can be determined.

The PMI data came amid sluggish economic indicators, with Taiwan's exports, export orders and gross domestic product forecasts all showing weak growth.

In the November PMI, sub-indexes for new orders, production and employment gained strength, while the sub-indexes for supplier deliveries and inventories lost ground.

Of the six major sectors covered by CIER's PMI, five showed continued growth in November: transportation (64), food and textiles (52.1), chemicals and biotechnology (53.5), basic raw materials (53.5), and electricity and machinery (56.1).

The electronics and optoelectronics sector meanwhile showed only 48.8, which despite its rise from October's 47.2 indicates a continued contraction in industry activity. November was s the sixth consecutive month the reading was below 50 for the sector.

The monthly PMI according to CIER has maintained a rating over 50 for the past 12 months (with the exception of February, which was an even 50) after staying under 50 between July and November of 2012. The think tank has been keeping PMI figures since July 2012.

Meanwhile, a separate sub-index that gauges how optimistic businesses are over economic prospects over the coming six months registered an increase, rising 1 point to 48.3, the report showed. (By James Lee)

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