Taiwan: Manufacturing PMI falls in June
July 1, 2015
The manufacturing Purchasing Managers’ Index (PMI), elaborated by Nikkei and Markit, fell from 49.3 points in May to 46.3 points in June, thus dropping to the lowest level since September 2012. As a result, the PMI remains below the 50-threshold that separates contraction from expansion in the manufacturing sector for the third consecutive month.
According to Nikkei, the result came on the back of steep falls in both output and new orders, which contracted at the fastest rate since September 2012. In addition, purchasing activity fell at the sharpest pace in over three-and-a-half years. In contrast, employment rose in June, although at a modest pace. Regarding inflationary pressures, low prices for raw materials contributed to falling prices, mirroring May’s result. Nikkei added that, “the downturn in Taiwan’s manufacturing sector intensified in June, with output and total new orders both contracting at sharper rates. Even new export orders, a key source of growth for Taiwanese manufacturers, fell at an accelerated rate in June, adding to fears that economic growth may weaken further in the second half of the year.”