| Actual | Previous | |
|---|---|---|
| Index | 53.2 | 50.9 |
Highlights
Taiwan's manufacturing PMI shows activity gained further momentum in June, with its headline index increasing to 53.2 from 50.9 in April. The survey has now shown expansion in the sector for three consecutive months after it had indicated contraction since mid-2022, with the headline index now at its highest level since March 2022. Respondents, however, reported less confidence about the outlook for output growth over the next twelve months, citing concerns about inflationary pressures.
Survey respondents reported the biggest increases in output and new orders since 2021 in June and the first increase in new export orders since early 2022. The survey showed a moderate fall in payrolls, while its measure of business confidence fell to its lowest level since February. Respondents reported the biggest increase in input costs in more than two years and the biggest increase in selling prices in nearly two years, with some noting the impact of delays in international shipping schedules.
Survey respondents reported the biggest increases in output and new orders since 2021 in June and the first increase in new export orders since early 2022. The survey showed a moderate fall in payrolls, while its measure of business confidence fell to its lowest level since February. Respondents reported the biggest increase in input costs in more than two years and the biggest increase in selling prices in nearly two years, with some noting the impact of delays in international shipping schedules.
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.
