Taiwan PMI May To Explore New Low, Unpaid Vacation Enterprises Continued To Record High

Xinhua news agency, Taipei, June, 1 (reporter Wu Jihai and Fu Shuangqi) Taiwan Institute of Chinese economics announced on 1, following the sharp decline in April, the Manufacturing Purchasing Managers Index (PMI) of Taiwan continued to fall 2.8 percentage points to 44.8% in May, the fastest tightening speed for the index since July 2012.

Among the five indicators of PMI, new orders, production and manpower employment continued to tighten, and all fell to the fastest tightening speed since July 2012. Suppliers' delivery time increased and inventories expanded.

The six major industries, PMI, are all contracted. According to the speed of tightening, they are ranked as 32.6% of the transportation industry, 39.1% of the electric power and machinery equipment industry, 42.2% of the basic raw material industry, 45.2% of the food and textile industry, 48.2% of the chemical and biotechnology medical industry, 49.5% of the electronics and optical industry.

The non Manufacturing Managers Index (NMI) of Taiwan has finally improved since May, when it hit the biggest decline since its creation in 2014. The index rose 2.7 percentage points to 45.2%, but it remained tight for 4 consecutive months in February. Among the four indicators, business activities, new orders and manpower employment were tight, and suppliers' delivery time increased.

For the future direction of the manufacturing industry, the economic and Trade Institute pointed out that although it is foreseeable that the boom and demand will reverse, it is still hard to predict when the production level will be resumed and the normal time for resumption of operation can not be seen. With the cancellation of the industry orders and the frequent delays, enterprises have to reduce manpower and labor hours and keep the goods out of order, so as to reduce the impact. The challenge of some industry funding chain breaking is only beginning in the second half.

As for the non manufacturing sector, manufacturers are turning to a flat or expanding business in the future. It is mainly believed that the worst case in Taiwan has passed, and the financial industry and the construction of immovable industries are also steady.

The Ministry of labor affairs of the Taiwan authorities announced the latest unpaid false statistics the same day. As of May 31st, the number of unpaid fake enterprises in Taiwan has reached 1330. The number of unpaid leave has broken through 25 thousand people, reaching 26323.