Taiwan: Manufacturing PMI rises in July
August 1, 2016
The Manufacturing Purchasing Managers’ Index (PMI), elaborated by Nikkei and IHS Markit, edged up from 50.5 in June to 51.0 in July. With July’s reading, the Manufacturing PMI moved further above the 50-point threshold that separates expansion from contraction in the sector and marked the highest reading since March.
According to Nikkei, July’s reading reflected growth in new business and in soutput, albeit at a marginal pace. The expansion in new business was supported by the sharpest rise in new export orders since January 2015. To meet higher production needs, employment at Taiwanese manufacturers rose and input buying increased. Regarding price developments, input prices and output costs rose at the fastest pace in over five years.
Markit analysts added that, “PMI data for July suggest that Taiwan’s manufacturing sector expanded for the second month in a row, albeit at a marginal pace. Production and total new orders both rose only slightly, while employment growth remained modest overall. Improved export sales were one positive takeaway from the latest survey, where growth hit an 18- month high. However, a subdued global economic outlook and muted domestic demand both remain headwinds to growth.”