The PMI gauges the health of the manufacturing industry, with values of above 50 suggesting expansion and points below the threshold indicating contraction. At the same time, tight COVID-19 controls in China continue to cloud order visibility and weigh on business for local firms, Chen said. Taiwan might follow in the steps of South Korea, a major trade rival, which has reported trade deficits for six months straight, Wang said. The government can help avoid such a scenario by helping industrial sectors to take bolder steps to encourage private consumption. Still, the six-month business measure dropped 2.8 points to 41.1, as most service providers are preparing for a business downturn amid poor consumer confidence.

Source: Taipei Times October 04, 2022 01:25 UTC