ACTING ON EXPECTATIONS:The rate of expansion last month was moderate. A report said the continued decline in the new orders sub-index shows the need for caution
Date: Jul 02, 2016
By: Crystal Hsu / Staff reporter
The Nikkei Taiwan Manufacturing purchasing managers’ index (PMI) rebounded to 50.0 last month from 48.5 the previous month, signaling a marginal improvement in overall operating conditions due to better client demand expectations.
Purchasing activity rose slightly as companies increased production amid expectations of improving client demand, the monthly survey sponsored by the Japanese media organization showed.
“Driving the PMI higher was the first expansion of industrial output in three months, alongside a slightly faster pace of job creation, suggesting firms have become more optimistic towards their business outlook,” said Annabel Fiddes, London-based economist at Markit, a financial information services company that complies the survey.
PMI surveys aim to gauge the health of the manufacturing industry, with figures larger than 50 indicating expansion and values below the neutral mark suggesting contraction. [FULL STORY]