Taiwan's manufacturing PMI shows the sector expanded for the eleventh consecutive month in February and at a moderately faster pace, with its headline index increasing to 51.5 from 51.1 in January. Respondents reported improved current conditions and are increasingly confident about the outlook for output growth over the next 12 months.

Survey respondents reported output, new orders, and new export orders all grew at a faster pace in February. The survey showed a small reduction in payrolls, but its measure of business confidence picked up to a eight-month high. Respondents reported a bigger increase in input costs but a modest increase in selling prices.

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.

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.