| Actual | Previous | |
|---|---|---|
| Index | 44.1 | 44.8 |
Highlights
The S&P Global Taiwan manufacturing PMI survey's headline index indicated contraction in the sector for the 14th consecutive month in July, with its headline index falling from 44.8 in June to 44.1, its lowest level since November 2022. Respondents cited weak external demand as the main factor weighing on activity and sentiment.
Survey respondents reported output, new orders, and new export orders all fell in July at the fastest pace in several months, with demand from all major export markets reported to have weakened. The survey also shows another decline in payrolls and a fall in its measure of business confidence, with respondents expecting output to drop further over the next 12 months. Respondents reported declines in both input costs and selling prices in July, with the latter reported to have been cut at the fastest pace in more than three years.
Survey respondents reported output, new orders, and new export orders all fell in July at the fastest pace in several months, with demand from all major export markets reported to have weakened. The survey also shows another decline in payrolls and a fall in its measure of business confidence, with respondents expecting output to drop further over the next 12 months. Respondents reported declines in both input costs and selling prices in July, with the latter reported to have been cut at the fastest pace in more than three years.
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.
