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| Index | 55.1 | 55.2 |
Highlights
Taiwan’s manufacturing PMI shows conditions in the sector eased but remained strong in July, with its headline index falling slightly to 55.1 from 55.2 in June. Respondents again reported cost pressures and supply delays due to the Iran conflict but also noted strong demand conditions.
Survey respondents reported growth in output and new export orders eased in June, but the increase in new orders was among the biggest reported in last five years. The survey showed the first increase in payrolls since February, but its measure of business confidence fell to a three-month low. Respondents also reported input costs and selling prices both rose at slower pace in July.
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.