Taiwan's manufacturing sector contracted it March, as output growth slowed due to weakening demand, S&P Global reported Tuesday.

The S&P Taiwan Manufacturing PMI slid to 49.8 in March from 51.5 in February. Readings above 50 indicate expansion, while below 50 signal contraction.

Taiwanese manufacturers saw a notable slowdown in the rates of production and new order growth.

On the price front, input price inflation rose due to higher material costs. The pace of job cuts accelerated since February but remained modest overall.

Looking ahead, the consumer confidence in the outlook was positive for the next 12 months. The business confidence rose to the highest level in nine months, the report added.