Taiwan Manufacturing Activity Falls to Near Two-Year Low

Taiwan’s manufacturing sector contracted further in July, with the S&P Global Manufacturing PMI dropping to 46.2 from 47.2 in June, the steepest decline since August 2023 and the fifth consecutive monthly drop. Firms cited weaker sales as the main driver behind reduced output, with both total new business and export orders falling at the fastest pace in nearly two years amid ongoing uncertainty around US trade policy. In response, manufacturers cut back on purchasing and trimmed staff levels. Business confidence fell to its lowest point in two-and-a-half years. Input costs edged higher, but firms slightly lowered selling prices in a bid to attract new business.