Taiwan's manufacturing sector expanded at a slower but still solid pace in March, as the war in the Middle East drove up costs and disrupted supply chains, according to data released Wednesday by S&P Global.
The Taiwan Manufacturing Purchasing Managers' Index fell to 53.3 in March from 55.2 in February, indicating a softer expansion, though operating conditions improved for a fourth straight month.
Output and new orders continued to grow at historically strong rates, albeit at a slower pace.
Export demand remained solid, supported by stronger sales to Europe, Japan, mainland China, and the U.S.
However, supply chain conditions worsened, with supplier delivery times lengthening at the fastest pace since May 2022. Firms linked the deterioration to disruptions stemming from the Middle East conflict.
At the same time, input costs surged at the second-steepest rate in nearly four years, driven by higher raw material and oil prices.
Companies raised selling prices at the fastest pace since June 2022.
Employment declined slightly, while business confidence remained strong, holding close to a 21-month high on expectations of sustained global demand, particularly for AI-related products.
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