| Actual | Previous | |
|---|---|---|
| Index | 48.6 | 49.0 |
Highlights
The S&P Taiwan manufacturing PMI survey indicates that the contraction in the sector seen in recent months continued in March and at a slightly more pronounced rate, with the headline index falling to 48.6 from 49.0 in February. Respondents cited ongoing weakness in external demand as the main factor driving this contraction in activity.
Survey respondents reported output, new orders, and new export orders all fell in March at a rate similar to that seen in February. Payrolls were reported to have fallen slightly, while the survey's measure of business confidence shows firms remain pessimistic about the outlook for output over the next twelve months. The survey also shows tighter margins, with respondents reporting a smaller increase in input costs but another reduction in selling prices in March.
Survey respondents reported output, new orders, and new export orders all fell in March at a rate similar to that seen in February. Payrolls were reported to have fallen slightly, while the survey's measure of business confidence shows firms remain pessimistic about the outlook for output over the next twelve months. The survey also shows tighter margins, with respondents reporting a smaller increase in input costs but another reduction in selling prices in March.
Definition
The Purchasing Managers' Manufacturing Index (PMI) is based on monthly questionnaire surveys of selected companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sectors.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
