Taiwan: Manufacturing PMI rebounds in March and crosses the 50-treshold
April 1, 2016
The manufacturing Purchasing Managers’ Index (PMI), elaborated by Nikkei and Markit, increased from 49.4 in February to 51.1 in March. March’s reading marked the return of the Manufacturing PMI into expansionary territory after dropping below the 50-point threshold in February for the first time in four months.
According to Nikkei, March’s reading reflects a moderate increase in output and total new orders. The growth in new orders came on the back of higher domestic demand as demand from foreign markets declined for the third consecutive month. New business also expanded in March, which compelled firms to raise production and increase employment. Input costs rose for the first time in 18 months, while output costs declined again in March.
Markit analysts added that, “the PMI pointed to a modest rebound in Taiwan’s manufacturing sector, with output and new business both rising in March and offsetting deaclines in February. However, client demand remains relatively lacklustre, as overall new work rose only moderately. Furthermore, the data highlighted that weak external demand continued to be a drag on growth.”