Unstoppable AI business opportunities have shattered the traditional off-season curse of the “May-June slump.” The Chung-Hua Institution for Economic Research (CIER) announced on June 1, 2026, that the seasonally adjusted manufacturing Purchasing Managers’ Index (PMI) for May continued its ascent, rising 1.1 points to 61.4. This marks the eighth consecutive month of expansion (above 50) and the fastest pace of growth in nearly five years, dating back to September 2021.
The six-month outlook index also rebounded by 2.9 points to 66.8, recording the fastest expansion since June 2021, although sentiment diverges across industries. Shin-Horng Chen, Vice President of the CIER, stated that the index was primarily driven by robust activity in the electronics and optical sector, as well as the electrical and machinery equipment sector, with AI demand defying the traditional May-June lull. In the past, generational updates of information and electronics products were mostly localized enhancements—such as adding specific features—that benefited only individual companies or niche segments. In contrast, the AI era is generating a massive ripple effect, where advancements in GPUs, CPUs, and memory are triggering structural transformations across multiple industries.
Hsien-Ming Lien, President of the CIER, noted that the AI sector has sustained robust export momentum and generated exceptionally high derivative demand. Consequently, the Directorate-General of Budget, Accounting, and Statistics increased its full-year economic growth forecast to 9.64% in late May 2026. Meanwhile, Q1 growth soared to 14.55%, indicating that the overall economic climate is indeed “excellent.”
In May, the five component indicators of the PMI showed that new orders, production, and employment continued to expand, while supplier delivery times increased and inventories grew. The non-seasonally adjusted PMI for all six major industries also expanded, led by the electronics and optical sector and the transportation equipment sector.
Within the six major industries, three reported an expansionary six-month outlook: the electronics and optical sector, the electrical and machinery equipment sector, and the basic raw materials sector. Conversely, three industries—food & textiles, transportation equipment, and biotechnology & medical—forecast a contractionary outlook for the next six months.
Manufacturing delivery times and pricing continued to climb in May, with supplier delivery times surging at the fastest pace since July 2021. Furthermore, aggressive stockpiling by manufacturers over the past six months propelled the inventory index to 65.7, marking the fastest expansion since the index’s inception in July 2012. For the first time since November 2022, the manufacturing sector reported that customer inventories exceeded current requirements, with the index standing at 50.5.
The Non-Manufacturing Index (NMI) saw the impact of Middle East conflicts fade, alongside record-high stock markets, Mother’s Day promotions, and a surge in short-term rush orders from the U.S. market following the Trump-Xi summit. Driven by strong demand for high-end manufacturing customer services, the non-seasonally adjusted NMI expanded for the 15th consecutive month, reaching 58.2 in May. The NMI for all eight major non-manufacturing industries expanded, and the six-month outlook index edged up 0.3 points to 57.
Source: Commercial Times (June 2, 2026). AI Breaks Off-Season Curse: Taiwan’s May PMI Reaches 61.4 – Expanding for Eighth Consecutive Month. Commercial Times. https://www.ctee.com.tw/news/20260602700056-439901