Taiwan's manufacturing sector continued to contract in July and at a faster pace versus the month prior, S&P Global reported Friday.

The S&P Taiwan Manufacturing Purchasing Managers' Index slid to 46.2 in July from 47.2 in June, remaining in contraction territory indicated by readings below 50.

Manufacturing output in Taiwan declined further in July, and at the fastest pace for nearly two years. Panelists attributed the reduction in production to softer demand and a drop in new orders.

Employment declined further in July, due to lower inflows of new work and cost-cutting measures, S&P said.

On the price front, data showed a moderate rise in input costs, while firms slightly lowered their selling prices to attract and secure new business.

Looking ahead, the consumer confidence in the outlook was downbeat, and at the lowest level in two-and-a-half years, it added.