April PMI Hits 60.3%, Expanding for 7 Straight Months to Reach 4.5-Year High
Taiwan''s manufacturing PMI reached 60.3% in April 2026, marking seven consecutive months of expansion and a 4.5-year high. Key drivers include early orders due to US-Iran tensions, strong first-quarter exports, and growth led by the electronics industry. While AI investments fuel growth, experts warn of risks associated with industry concentration and energy price pressures.
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- 📰 Published: May 4, 2026 at 20:18
- 🔍 Collected: May 4, 2026 at 20:31 (12 min after Published)
- 🤖 AI Analyzed: May 4, 2026 at 21:17 (45 min after Collected)
The Chung-Hua Institution for Economic Research (CIER) announced today that Taiwan''s Manufacturing Purchasing Managers'' Index (PMI) for April 2026 rose by 4.9 percentage points to 60.3%. This marks the fastest expansion since September 2021 and the seventh consecutive month of growth. CIER President Lien Hsien-ming attributed the surge to three major factors: early inventory loading by manufacturers due to the US-Iran conflict, strong export performance in the first quarter (with March exports reaching US$80 billion), and the robust electronics sector driving growth in other industries.
The survey indicated that the seasonally adjusted PMI has maintained expansion for seven months. CIER Associate Research Fellow Chen Hsin-hui noted that supply disruptions in the petrochemical sector in March led to preemptive orders. Furthermore, the AI ''dual-engine'' momentum since November 2025 has caused shortages and price hikes in the semiconductor and electronic component supply chains. In April, reports of potential strikes at major international memory manufacturers further pushed the supplier delivery time index up by 4.3 percentage points to 70.6%, the fastest rise since July 2021.
While the six-month outlook for manufacturing remains expansionary, views vary by industry; the transportation, chemical/biotech, and food/textile sectors reported contraction. Academia Sinica researcher Chien Chin-han warned that global growth is heavily reliant on AI-related investments, which are highly concentrated in a single industry, advising caution regarding industry concentration risks. He also noted that with the Strait of Hormuz closed, energy price pressures persist in Southeast Asia and Europe. Meanwhile, the Non-Manufacturing Index (NMI) rose to 58.3% in April, supported by a stock market rally, demand for high-end manufacturing services, and Mother''s Day promotions.
The survey indicated that the seasonally adjusted PMI has maintained expansion for seven months. CIER Associate Research Fellow Chen Hsin-hui noted that supply disruptions in the petrochemical sector in March led to preemptive orders. Furthermore, the AI ''dual-engine'' momentum since November 2025 has caused shortages and price hikes in the semiconductor and electronic component supply chains. In April, reports of potential strikes at major international memory manufacturers further pushed the supplier delivery time index up by 4.3 percentage points to 70.6%, the fastest rise since July 2021.
While the six-month outlook for manufacturing remains expansionary, views vary by industry; the transportation, chemical/biotech, and food/textile sectors reported contraction. Academia Sinica researcher Chien Chin-han warned that global growth is heavily reliant on AI-related investments, which are highly concentrated in a single industry, advising caution regarding industry concentration risks. He also noted that with the Strait of Hormuz closed, energy price pressures persist in Southeast Asia and Europe. Meanwhile, the Non-Manufacturing Index (NMI) rose to 58.3% in April, supported by a stock market rally, demand for high-end manufacturing services, and Mother''s Day promotions.