| Actual | Previous | |
| Index | 55.3 | 53.3 |
Highlights
Taiwan's manufacturing PMI shows conditions in the sector regained momentum in April, with its headline index increasing to 55.3 from 53.3 in March. Respondents reported higher costs and supply delays due to the Iran conflict but also advised that they had increased production to stockpile ahead of potential further disruptions and cost increase.
Survey respondents reported output, new orders, and new export orders all rose at a faster pace in April. The survey showed a small drop in payrolls, but its measure of business confidence remains high, with demand for semiconductors and AI-related technology expected to remain strong. Respondents also reported the biggest increases in input costs and selling prices since 2021.
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.