Taiwan: Manufacturing PMI falls into contractionary territory
May 4, 2015
The manufacturing Purchasing Managers’ Index (PMI), elaborated by HSBC and Markit, fell from 51.0 in March to 49.2 points in April. The reading marked a 21-month low. As a result, the PMI index now rests below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to HSBC, the result came on the back of declines in both output and new orders for the first time in four months. In addition, purchasing activity recorded a contraction for the first time since August 2013. In addition, employment grew at the slowest pace since June 2013. Lower input costs were recorded again in April, although the pace of decrease eased. HSBC added that, “Taiwanese manufacturers had a disappointing start to the second quarter, with both output and new orders declining for the first time since the end of last year. Furthermore, the data suggested that both domestic and international demand had softened, with new export business also declining slightly.”