| Actual | Previous | |
|---|---|---|
| Index | 51.5 | 52.9 |
Highlights
Taiwan's manufacturing PMI shows the sector expanded for the fifth consecutive month but at a slower pace in August, with its headline index falling to 51.5 from 52.9 in July. Respondents reported solid external demand but more subdued domestic conditions 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 slower pace in August, with the former recording the slowest growth in the current five-month run of expansion. New export orders, however, were reported to have risen for the third month in a row and at the fastest pace in more than two years. The survey showed further stagnation in payrolls, while its measure of business confidence fell to its lowest level so far this year. Respondents reported smaller increases in both input costs and selling prices.
Survey respondents reported output and new orders grew at a slower pace in August, with the former recording the slowest growth in the current five-month run of expansion. New export orders, however, were reported to have risen for the third month in a row and at the fastest pace in more than two years. The survey showed further stagnation in payrolls, while its measure of business confidence fell to its lowest level so far this year. Respondents reported smaller increases in both input costs and 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.
