Taiwan's PMI Jumps to 60.6 in March

Taiwan's purchasing managers' index (PMI) for the manufacturing sector rose a sharp 10.3 points from the previous month to 60.6 in March, the second-highest level ever recorded (after only the 62.4 points recorded in March of 2013), according to Chung-Hua Institution for Economic Research (CIER), a leading economic think tank here.

CIER president C. S. Wu notes that Taiwan's six leading manufacturing sectors all showed an uptrend in PMI in March, with electronics & optical rising to 64.7 and electricity & machinery equipment growing to 59.2; for the food & textile, chemicals & bio-medical care, basic raw materials, and communication & transportation sectors, the March index stood at 59.2, 58.8, 55.1, and 53.8, respectively. In addition, the index for imported raw materials jumped by 11.3 points to 61.2 in March, implying an expansion of operations.

Wu says that the five factors making up the PMI--production level, new orders from customers, speed of supplier deliveries, inventories, and employment level--all registered positive growth in March. Further, in the same month domestic enterprises expressed, for the fourth consecutive month, optimism about the island's business climate over the next six months. The business climate directional movement index for the month stood at 63.7. (JL)