Taipei, Dec. 1 (CNA) Manufacturing activity in Taiwan stayed in expansion mode for the 17th consecutive month in November as an index gauging the climate of the manufacturing sector was boosted by growing new orders and rising production, the Chung-Hua Institution for Economic Research (CIER) said Wednesday.

Data compiled by CIER, one of the leading think tanks in Taiwan, showed the Purchasing Managers' Index (PMI) rose 1.2 points in November from the previous month to 59.5, with the sub-indexes on new orders and production over the 60 mark.

The data also indicated that the non-manufacturing index (NMI), which covers service sector activity, also rose 3.8 points from a month earlier to 62.3 in November, the largest expansion since the NMI statistics were first tallied in August 2014.

The NMI, which reflects domestic demand, has now been in expansion mode for five months in a row, according to CIER.

For the PMI and NMI, readings above 50 indicate expansion, while those below 50 represent contraction.

Among the five major factors in the PMI, three sub-indexes on new orders, production, and employment moved higher by 3.3, 4.6, and 1.0 points, respectively, from the previous month to 60.1, 60.5, and 56.2, signifying that all were in expansion mode in November, CIER said.

However, the sub-indexes on supplier deliveries and inventories moved lower by 1.3 and 1.5 points, respectively, to 64.4 and 56.5 in November but remained in expansion, CIER said.

CIER President Chang Chuang-chang (張傳章) told reporters that as manufacturing activity has kept expanding, many manufacturers had turned upbeat about the business outlook since supply chains had improved after recent adjustments.

In November, the sub-index on the business outlook over the next six months saw a three-month falling streak end as it moved higher by 3.7 points from a month earlier to 57.9.

Out of the six major industries in the local PMI, the sub-indexes on four industries -- the chemicals and biotech, electrical equipment and machinery, electronics/optoelectronics, and transportation equipment industries -- moved higher in November from a month earlier, CIER said.

On the other hand, the sub-indexes on the food and textiles and basic raw materials industries moved lower in November from the previous month, CIER added.

However, all of the six industries remained in expansion mode, according to the think tank.

As for the NMI, four factors in the index all moved higher with the sub-indexes on business activity, new orders, employment, and supplier deliveries up 4.7, 4.8, 2.3, and 3.2 points, respectively, from October to 66.0, 63.8, 58.9, and 60.5 in November.

Chang said the NMI is expected to keep going higher largely on the back of eased concerns over the domestic COVID-19 situation and the issuance of spending vouchers to boost private consumption.