| Actual | Previous | |
|---|---|---|
| Index | 48.3 | 47.6 |
Highlights
The S&P Global Taiwan manufacturing PMI survey's headline index shows activity again contracted in November but at a less pronounced pace, with its headline index increasing to 48.3 from 47.6 in October. This survey has indicated contraction in the sector for more than a year, though the index is now at its highest level since March. The survey also shows that respondents have become more confident about the outlook.
Survey respondents reported less pronounced declines in output, new orders, and new export orders in November, as well as the smallest decline in payrolls in eight months. For the first time in six months, the survey's measure of business confidence shows that respondents expect output to increase over the next twelve months, albeit at a modest pace. Respondents reported weaker price pressures in November, with the survey showing a smaller increase in input costs and only a modest increase in selling prices.
Survey respondents reported less pronounced declines in output, new orders, and new export orders in November, as well as the smallest decline in payrolls in eight months. For the first time in six months, the survey's measure of business confidence shows that respondents expect output to increase over the next twelve months, albeit at a modest pace. Respondents reported weaker price pressures in November, with the survey showing a smaller increase in input costs and only a modest increase in selling prices.
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.
