Taiwan: Manufacturing PMI rises to 3-month high
February 2, 2015
The manufacturing Purchasing Managers’ Index (PMI), elaborated by HSBC and Markit, rose from 50.0 in December to 51.7 in January, ending its downward slide. The reading marked a 3-month high. In addition, the PMI index now rests above the 50-threshold that separates expansion from contraction in the manufacturing sector.
According to HSBC, the result came on the back of increases in output, new orders and employment. While input costs fell in January, largely driven by lower prices for oil and related goods. HSBC added that, “The sharp reduction in inventories and rise in backlogs of work also suggest growth momentum will pick up in the months ahead. With employment also growing strongly, we believe there should be little pressure for Taiwan’s central bank to loosen policy.”