| Actual | Previous | |
|---|---|---|
| Index | 52.9 | 53.2 |
Highlights
Taiwan's manufacturing PMI shows the sector expanded for the fourth consecutive month but at a slower pace in July, with its headline falling to 52.9 from a three-year high of 53.2 in June. Respondents reported solid external demand but stronger price pressures and are less confident about the outlook for output growth over the next 12 months.
Survey respondents reported output and new orders grew at a strong pace in July, albeit down from the three-year high recorded in June. New export orders were reported to have risen for the second month in a row after an extended period of contraction. The survey showed stagnation in payrolls, while its measure of business confidence fell to its lowest level so far this year. Respondents reported the biggest increase in both input costs and selling prices since 2022, with higher prices for raw material cited as a major factor.
Survey respondents reported output and new orders grew at a strong pace in July, albeit down from the three-year high recorded in June. New export orders were reported to have risen for the second month in a row after an extended period of contraction. The survey showed stagnation in payrolls, while its measure of business confidence fell to its lowest level so far this year. Respondents reported the biggest increase in both input costs and selling prices since 2022, with higher prices for raw material cited as a major factor.
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.
