The S&P Global Taiwan Manufacturing PMI increased to 47.7 in October 2025 from 46.8 in September, suggesting a slower decline, yet it still marks the eighth consecutive month of contraction. Both output and new orders continued to decrease, albeit at their mildest rates in five months, while employment experienced a slight dip. Consistent decreases in new work and production requirements led companies to reduce purchasing activities and exercise stringent inventory management, resulting in declines in both input and finished goods inventories at the beginning of the fourth quarter. Inflationary pressures intensified, with average input costs escalating at the quickest rate in 15 months. Although the overall outlook on future output remained negative, it was less pessimistic than in the prior three months.
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