Taiwan: Manufacturing PMI remains broadly unchanged in May
June 1, 2015
The manufacturing Purchasing Managers’ Index (PMI), elaborated by HSBC and Markit, inched up from 49.2 points in April to 49.3 points in May. As a result, the PMI remains below the 50-threshold that separates contraction from expansion in the manufacturing sector for the second consecutive month.
According to HSBC, the result came on the back of a fall in output, which broadly mirrored April’s decrease. In addition, firms increased their staffing levels, although at a moderate pace, and purchasing activity was little-changed from April’s decline. In contrast, total new orders fell at the sharpest rate in 22 months, with new exports decreasing for the second month in a row. Lower input costs were recorded again in May, although the pace of decrease eased to an eight-month low. HSBC added that, “May data pointed to a further loss of momentum in Taiwan’s manufacturing sector, with output declining for the second month in a row and new work falling at a faster rate. Data suggested that both domestic and international demand remained relatively muted, as a slowdown across a number of key export markets led to fewer new orders from abroad.”