In March 2025, the S&P Global Taiwan Manufacturing PMI experienced a notable decline to 49.8 from 51.5 in February, signaling the first contraction in a year. The growth rates for both production and new orders slowed considerably, registering only a slight increase over the month. In response to these conditions, companies proceeded to reduce their workforce and took a more conservative approach towards inventory management. Meanwhile, the average input costs rose at their slowest rate in a year, prompting firms to reduce selling prices to boost sales. Despite this setback, businesses held an optimistic view regarding future output, with overall confidence reaching its highest level in nine months. Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, observed that firms remain "hopeful that stronger customer demand and productivity gains will drive output higher in the coming months."