Taiwan PMI

Taiwan

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.”

FocusEconomics Consensus Forecast panelists expect investment to expand 3.2% this year, which is up 0.3 percentage points over last month’s forecast. For 2016, participants expect investment to increase 3.0%.


Author: Angela Bouzanis, Senior Economist

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Taiwan PMI Chart


Taiwan PMI June 2015

Note: Nikkei Taiwan Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Nikkei and Markit.


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