| Actual | Previous | |
|---|---|---|
| Index | 50.9 | 50.2 |
Highlights
The S&P Global Taiwan manufacturing PMI survey's headline index shows activity picked up in May, with its headline index increasing to 50.9 from 50.2 in March. The survey has now shown expansion in the sector for two consecutive months after it had indicated contraction since mid-2022. Respondents also remain confident about the outlook for output growth over the next twelve months.
Survey respondents reported the biggest increases in output since 2021 in May and the biggest increase in new orders in more than two years. Offsetting this improvement, the survey shows another decline in new export orders and the second fall in payrolls in the last three months, with its measure of business confidence remaining solid but falling from last month. Respondents reported the biggest increase in input costs in nearly two years but only a modest increase in selling prices.
Survey respondents reported the biggest increases in output since 2021 in May and the biggest increase in new orders in more than two years. Offsetting this improvement, the survey shows another decline in new export orders and the second fall in payrolls in the last three months, with its measure of business confidence remaining solid but falling from last month. Respondents reported the biggest increase in input costs in nearly two years but 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.
