| Actual | Previous | |
|---|---|---|
| Index | 47.6 | 46.4 |
Highlights
The S&P Global Taiwan manufacturing PMI survey's headline index shows activity again contracted in October but at a less pronounced pace, with its headline index increasing from 46.4 in September to 47.6. This survey has indicated contraction in the sector for more than a year, though the index is now at its highest level since March. Respondents, however, continue to see little prospect of near-term recovery.
Survey respondents reported substantial but less pronounced declines in output, new orders, and new export orders in October, though some noted improved demand from some major trading partners. The survey also shows another decline in payrolls and further weakness in its measure of business confidence, with respondents expecting output will continue to decline over the next 12 months. Respondents, however, reported stronger price pressures in October, with the survey showing the biggest increase in input costs since February and the biggest increase in selling prices since mid-2022.
Survey respondents reported substantial but less pronounced declines in output, new orders, and new export orders in October, though some noted improved demand from some major trading partners. The survey also shows another decline in payrolls and further weakness in its measure of business confidence, with respondents expecting output will continue to decline over the next 12 months. Respondents, however, reported stronger price pressures in October, with the survey showing the biggest increase in input costs since February and the biggest increase in selling prices since mid-2022.
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.
