TOKYO -- Taiwan's manufacturing sector showed continued deterioration, further contracting in new orders and exports sales.
The Nikkei Taiwan Manufacturing Purchasing Managers' Index, or PMI, rose marginally to 48.4 in May from 48.2 in April, signalling modest deterioration in overall operating conditions.
A reading above 50 indicates an expansion while a reading below 50 points to a contraction. Taiwan's manufacturing sector has weakened in each month since October 2018.
Panellists noted softer demand both at home and abroad, leading to deterioration in the amont of new work.
Amid concerns surrounding the U.S.-China trade tensions, "business sentiment regarding the year ahead turned negative in May, while companies cut back on their purchasing activity and inventories," said Annabel Fiddes, principle economist at IHS Markit, which compiles the survey.
"Another worrying trend was seen for output prices, which fell solidly in May, as companies struggled to remain competitive and attract new orders," Fiddes added.