Taiwan’s Manufacturing PMI Rises to 63.4, Fastest Since August 2021, as Input Prices Hit 80.4
Taiwan’s manufacturing sector expanded for a 12th consecutive month in September, with the seasonally adjusted purchasing managers’ index rising 0.9 points to 63.4, its fastest growth since August 2021, the National Development Council said. The non-manufacturing index rose 1.3 points to 56.9, its 19th month of expansion. The rise came with sharper cost pressure: the raw material prices index climbed 5.1 points to 80.4, above 70 for a 9th month.
Output strong, orders cooling
Production rose 0.4 points to 65.6, also the fastest since August 2021, and employment 1.6 points to 57.6, the fastest since September 2021. New orders eased 2.9 points to 63.6 from August’s 66.5, which had been their fastest since August 2021, and new export orders fell 3.5 points to 58.1. On our calculation, the gap between the prices and new orders indices widened to 16.8 points from 8.8 in August, and new orders now run only 2.2 points ahead of inventories, against 8.3 points a month earlier. Inventories rose 3.2 points to 61.4 and the backlog of orders fell 5.8 points to 54.9, its slowest growth since January 2026. Customers’ inventories moved to too high at 50.7, after 3 months of being too low. The headline index is the average of 5 components; on our calculation, supplier deliveries and inventories added about 1.0 point to it between them, while new orders took away about 0.6 points.
Taiwan manufacturing PMI, September 2026
| Index | September | August | Change |
|---|---|---|---|
| PMI, seasonally adjusted | 63.4 | 62.5 | +0.9 |
| Production | 65.6 | 65.2 | +0.4 |
| New orders | 63.6 | 66.5 | -2.9 |
| Employment | 57.6 | 56.0 | +1.6 |
| New export orders | 58.1 | 61.6 | -3.5 |
| Raw material prices | 80.4 | 75.3 | +5.1 |
| Future outlook | 61.4 | 65.2 | -3.8 |
Readings above 50 indicate expansion. August values for production, employment, new export orders and raw material prices are derived from the published changes.
5 of 6 industries accelerate
5 of the 6 manufacturing industries grew faster in September. Electrical machinery and equipment led at 64.4, while electronics and optical products slipped 2.6 points to 62.6 as its new orders fell 10.8 points to 56.7. In chemicals, biotechnology and medical products, the raw material prices index jumped 11.2 points to 77.0, a rise the release linked to international crude prices above 100 dollars a barrel. Among services, information and communication rose 10.7 points to 62.0, while accommodation and food fell 11.7 points to 59.6. Retail was the only one of 8 non-manufacturing industries whose future outlook index pointed to contraction, at 43.5.
Taiwan manufacturing industries, September 2026
| Industry | September | August | Change |
|---|---|---|---|
| Electrical machinery and equipment | 64.4 | 61.1 | +3.3 |
| Electronic and optical | 62.6 | 65.2 | -2.6 |
| Basic materials | 56.7 | 53.0 | +3.7 |
| Chemical, biotechnology and medical | 56.2 | 54.5 | +1.7 |
| Foods and textiles | 56.1 | 52.4 | +3.7 |
| Transportation equipment | 53.2 | 50.6 | +2.6 |
Not seasonally adjusted. August values from the release and its charts; basic materials derived from the published change.
Why it matters: Taiwan’s factories are running at their fastest pace in 5 years, but the mix is shifting. On our reading, the composition is less demand led than the 63.4 headline suggests: longer supplier deliveries and inventory building lifted the index while new orders and export orders slowed, the prices index now sits 16.8 points above new orders, and the electronics slowdown is the one to watch in an economy built around it.
Outlook: The council publishes October’s index on or before 3 November. Taiwan’s September consumer and wholesale prices are due on 7 October and September trade figures on 8 October.
Sources: National Development Council, The Edge.
