MNI BRIEF: Taiwan PMI Downturn Eases Slightly In December

The rate of contraction in Taiwan's manufacturing sector eased in December, as firms reported continued falls in output and new orders, according to the S&P Global Taiwan Manufacturing PMI released on Tuesday.

The PMI index rose from 41.6 in November to 44.6 in December, the highest level since July but the seventh month of contraction, S&P said.

December’s data showed firms cut back on purchasing activity as sales dropped, with new export business falling at a historically sharp pace, and inventories continued to decline. The rate of price discounting by firms was the quickest seen since 2020, as firms made efforts to boost sales. If global demand fails to improve it is unlikely business confidence and output will return to positive territory, according to analysts.