Taiwan's manufacturing purchasing managers' index (PMI) reached 61.4 in May, reflecting a 1.1-point increase from April, according to the Chung-Hua Institution for Economic Research (CIER). This marks the eighth consecutive month of expansion and the highest level since September 2021. A PMI above 50 indicates growth, while below 50 signifies contraction. The rise is largely attributed to strong demand in Taiwan's electronics and machinery sectors, driven by the booming AI industry. The sub-index for business outlook also improved, climbing to 66.8, indicating optimism about future economic conditions. CIER President Lien Hsien-ming noted that the AI sector is significantly boosting exports and transforming various industries. President Lai Ching-te highlighted the need for political stability to ensure reliable supply chains, particularly as Taiwan is home to major semiconductor manufacturers like TSMC, which produces chips for leading tech companies. The data release coincides with the Computex trade show in Taipei, focusing on AI technology.