Taiwan's manufacturing PMI shows the sector contracted in March after eleven consecutive months of expansion, with its headline index falling to 49.8 from 51.5 in February. Respondents reported weak current conditions but remain 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 March, while new export orders stalled, reflecting challenging demand conditions across Europe, Japan and the United States. The survey showed a seventh consecutive reduction in payrolls, but its measure of business confidence picked up to a nine-month high. Respondents reported a smaller increase in input costs and the first reduction in selling prices since last April.

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.