The Chung-Hua Institution for Economic Research (CIER) announced yesterday (November 3) that the Manufacturing Purchasing Managers’ Index (PMI) for October reached 50.3%, ending 4 consecutive months of contraction and returning to expansion territory. The recovery was primarily driven by robust demand for AI-related hardware, shortages and price increases in electronic components, and early 2026 demand forecasts from certain brand manufacturers, which pushed the new orders index to 51.1% and the production index to 53.2%.
Among the 6 major industrial sectors, only the electrical and machinery equipment industry (51.8%) maintained expansion, while the remainder continued to contract, indicating weak momentum in traditional manufacturing. Although the 6-month outlook index rebounded to 41.5%, corporate sentiment toward future market conditions remains cautious. Hsien-Ming Lien, President of the CIER, noted that the manufacturing recovery has been uneven, with AI and machinery-related industries showing relative resilience. Although the overall economic situation has stabilized, demand-side activity remains lagging.
In the non-manufacturing sector, the Non-Manufacturing Index (NMI) for October increased to 54.4%, indicating eight consecutive months of expansion, bolstered by seasonal strength in Q4 and improving conditions in the stock market. However, geopolitical tensions and tariff uncertainties continue to weigh on business investment, and the pace of economic recovery remains cautious.
Author: CIER Editorial Team
Date: November 4, 2025