| Actual | Previous | |
| Index | 56.7 | 54.7 |
Highlights
Taiwan’s manufacturing PMI shows conditions in the sector improved sharply in September, with its headline index falling to a five-year high of 56.7 from 54.7 in August. Respondents again reported strong AI-related demand and are optimistic this will continue.
Survey respondents reported growth in output and new orders gained further momentum in September, while the increase in new export orders was the biggest reported in the last five years. The survey showed the third consecutive increase in payrolls, while its measure of business confidence picked up to its highest level since February. Respondents also reported input costs rose at faster pace in September while selling prices were increased at a more pronounced rate.
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.