The Chung-Hua Institution for Economic Research (CIER) reported on December 1 that Taiwan’s manufacturing Purchasing Managers’ Index (PMI) climbed to 51.4% in November 2025, marking the second consecutive month of expansion. The increase was driven by diminishing tariff impacts, short-term inventory replenishment orders, and preparations for 2026 procurement activities. The non-manufacturing Purchasing Managers’ Index (NMI) rose to 55.8%, signaling continued momentum in expansion. This growth was bolstered by seasonal demand and a recovery in the manufacturing sector, contributing to a positive outlook for the economy.
Hsien-Ming Lien, President of the CIER, noted that ongoing shortages and price increases in electronic components and electrical equipment have sustained expansion in new orders and production for two consecutive months. However, uncertainty surrounding medium- to long-term end-user demand continues to constrain the six-month outlook, which remains in contraction territory. Nevertheless, the pace of contraction has moderated to its slowest level since reciprocal tariffs took effect. A significant development is the employment index, which ended seven months of contraction and entered expansion, indicating that some companies have begun hiring additional staff. This is an important sign of economic stabilization.
Among the six major manufacturing industries, transportation equipment and electronics and optics sectors served as the primary growth drivers. The transportation equipment industry benefited from automotive dealer promotions and inventory restocking, with its future outlook shifting from contraction to expansion. The electronics and optics sector was supported by demand for AI servers and advanced manufacturing processes. However, rising supplier delivery times and raw material costs continue to put upward pressure on costs.
In the non-manufacturing sector, retail and hospitality businesses experienced seasonal growth, while the financial and insurance industry returned to expansion amid a rebounding stock market. Real estate-related businesses, supported by government policies and demand for engineering projects, showed a significant deceleration in the pace of contraction in their outlook. Overall, domestic demand is recovering, and external demand is showing gradual improvement. Businesses are adopting a more stable outlook toward future market conditions.
Author: CIER Editorial Team
Date: December 2, 2025