May PMI hits 5-year high; CIER says AI breaks 'May-June slump' pattern

The Chung-Hua Institution for Economic Research (CIER) announced today that the seasonally adjusted Manufacturing Purchasing Managers' Index (PMI) for May rose 1.1 percentage points to 61.4%, the fastest expansion since September 2021, driven by robust AI-related exports. CIER Vice President Chen Shin-horng noted that the arrival of the AI era has broken the traditional 'May-June slump' pattern. The PMI has now expanded for eight consecutive months, bolstered by the electronics, optical, and machinery sectors. The six-month outlook index also rose to 66.8%, the highest since June 2021. CIER President Lien Hsien-ming stated that the economy is performing exceptionally well due to high AI demand. However, researcher Chen Hsin-hui warned that for the first time since November 2022, manufacturers reported customer inventories exceeding current needs, a trend worth monitoring. The Non-Manufacturing Index (NMI) also continued to expand for the 15th consecutive month at 58.2%.