Taiwan’s manufacturing sector strengthened last month, with the purchasing managers’ index rising to 57.2, up 1.9 points and marking a fourth consecutive month of expansion, according to the Chung-Hua Institution for Economic Research. The non-manufacturing index climbed to 55.3, extending growth in services.
The improvement followed the conclusion of Taiwan-U.S. tariff negotiations, which set tariffs at 15 percent without stacking on most-favored nation rates and granted preferential treatment for semiconductors and related products. The removal of policy uncertainty boosted business confidence, with forward-looking indicators turning broadly positive.
All six major manufacturing industries expanded, and the six-month outlook index jumped to 61, the strongest pace since early 2022. Electronics and optical products led gains on sustained artificial intelligence demand, while memory tightness supported advanced component orders.
Services remained resilient, led by hospitality, finance, and logistics. However, basic materials producers continued to face pressure from 50 percent tariffs, and retail activity remained cautious.
