PMI Rises in April; Taiwan Dollar Expected to Appreciate Further

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Taiwan’s April purchasing managers’ index (PMI) was 61% in April, 4.2 percentage points lower than March, but still on an upward trend for the 14th consecutive month. However,  non-manufacturing managers’ index (NMI) rose 1.2 percentage points from March to 56.3%.

PMI expectations for the next six months is positive. Wu Chung-Shu (吳中書), professor of economics at Academia Sinica, said that economic recovery has been better than last year.

Wu also noted that the New Taiwan Dollar (TWD) is expected to continue to appreciate versus the US Dollar (USD), Apple Daily reported. His projection is based on the strong economic recovery as well as improving exports. However, a continued appreciation will challenge exporters, but it will make imports cheaper.

In addition, US President Donald Trump has repeatedly said that the USD is too strong. If the USD continues to slip against foreign currencies, manufacturing jobs may return to the US, according to the White House.

Wu Ming-hui (吳明蕙), head of the National Development Council (NDC)’s department of economic development, said that she believes the US manufacturing industry will regain its top position ahead of China as the industry has been restructured and the government relaxes regulations, particularly those related to pollution. In addition, more manufacturing will leave China as local wages increase.

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