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Taiwan's April PMI falls to 49.2; output, new orders slide
[TAIPEI] Purchasing activity contracts for first time in 20 months April data signalled a renewed deterioration in operating conditions faced by Taiwanese manufacturers, with output and new orders both declining for the first time in four months.
Though the rates of reduction were slight, it was only the second time that production and new orders have fallen since August 2013.
Reduced client demand led firms to cut back their purchasing activity for the first time since August 2013, while inventories of inputs and finished goods fell modestly.
Commenting on the Taiwan PMI survey, John Zhu, economist at HSBC, said: "Taiwanese manufacturers had a disappointing start to the second quarter... Furthermore, the data suggested that both domestic and international demand had softened, with new export business also declining slightly."
"April's survey data suggests that the sector may struggle to return to growth territory in the near future, as companies reduced their purchasing activity amid reports of lower production requirements and continued to eat into their stock holdings."