The Chung-Hua Institution for Economic Research (CIER) released Taiwan’s July 2026 PMI and NMI figures on August 3. The manufacturing PMI rose further to 61.5, marking its 10th consecutive month of expansion. The index recorded its fastest growth since September 2021 and reached a nearly five-year high.
The manufacturing sector’s six-month outlook index also rose 0.3 percentage points to 64.5 in July. It remained above 60.0 for the seventh consecutive month. Among the five component indicators, seasonally adjusted new orders and production continued to expand. Supplier delivery times increased, with the index remaining above 50.0, while employment and inventories expanded at slower rates.
Hsien-Ming Lien, President of the CIER, said Taiwan’s exports have remained exceptionally strong. Exports reached a record high in the first half of the year. The Directorate-General of Budget, Accounting and Statistics recently raised its estimate for Taiwan’s second-quarter economic growth by two percentage points, indicating that manufacturing activity has remained at a very high level.
Shin-Hui Chen, an Associate Research Fellow at the Taiwanese Economy Research Division of the CIER, said new orders and production momentum remained robust across the manufacturing sector in July. The new orders and production indices rose further to 63.3 and 62.7, respectively. By industry, the electronics and optical sector remained the main driver of manufacturing expansion. Although its PMI edged down 0.6 percentage points in July, it remained elevated at 65.5. New orders, production, inventories, and backlogs all registered expansion readings above 60.0. The sector’s six-month outlook index also returned to above 70.0.
The figures show that manufacturers are receiving stronger order support while customers’ inventories continue to decline. This suggests that end-market demand is genuine and likely to persist. However, Shin-Horng Chen, Vice President of the CIER, warned that material shortages and rising prices are seriously disrupting manufacturing operations and business conditions. The supplier delivery times index climbed to 71.2 in May 2026, its highest level since July 2021. The pace of increase has not accelerated significantly since then. Some manufacturers continued to report improving orders and production in July as well as an expansionary outlook. However, material shortages, price increases, and longer lead times constrained output.
Geopolitical uncertainty continues to disrupt global supply chains, while demand related to AI and semiconductors remains strong. The CIER noted that key material suppliers face limited capacity and have shifted toward selective order acceptance and quota-based allocation. They are prioritizing customers that place higher-value orders, accept price increases, or maintain long-term business relationships. According to the July 2026 Business Outlook Survey, the electronics and optical sector expects purchasing prices to rise by 24.4 for the full year of 2026, while average selling prices are projected to increase by only 15.2. The figures indicate a widening gap between cost increases and selling-price growth.
Taiwan’s non-manufacturing index fell 2.6 percentage points to 57.3 in July from 59.9 in the previous month. President Lien attributed the decline to Taiwan’s stock market. After the market pulled back in July from its record high in June, some non-manufacturing executives expressed concern about a weakening wealth effect and deteriorating consumer confidence. The six-month outlook index fell 4.6 percentage points to 58.9 from 63.5, which had marked its fastest expansion since June 2024.
Source: Commercial Times (August 4, 2026). Taiwan’s PMI Expands for 10th Straight Month to 61.5 in July, Nearly Five-Year High. Commercial Times. https://www.ctee.com.tw/news/20260803701357-430102