Taiwan's Manufacturing Sector Sees Largest Surge In Activity In 20 Months

Taiwan’s manufacturing purchasing managers index for November jumped to 53.4 from 53.0 in October,
the strongest improvement since March 2012.

Growth of both output and new orders both hit 20-month highs.

The island nation also saw its second-strongest expansion of payroll numbers

since April 2011.

Still, Taiwan is surrounded by countries where demand is flagging, and HSBC economist Ronald Man says the Taiwanese Central Bank is likely to maintain an accommodative stance.

“Further improvements in Taiwan’s manufacturing conditions suggest that the trade-dependent economy will end the year on a strong note. Stronger new orders and output have filtered into higher employment, which will help support household consumption. But there is insufficient evidence that external demand, especially from Mainland China, has fully recovered. Therefore policymakers in Taipei will likely maintain an accommodative stance for the time being.”


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