Taiwan Nikkei July PMI Rises to 47.1; Remains in Contraction
HONG KONG--An indicator of Taiwan's manufacturing activity continued to point to a contraction in July due to the sharp fall of production and new orders, amid weak demand from export markets, Nikkei said Monday.
The monthly Nikkei Taiwan Purchasing Managers Index, a gauge of nationwide manufacturing activity, rose to 47.1 in July from 46.3 in June. A PMI reading above 50.0 indicates manufacturing is expanding, while a reading below 50 indicates contraction.
The PMI is derived from a number of subindexes, including employment and new orders.
" Taiwan's manufacturing sector had a disappointing start to the third quarter, with output, new orders and new export business all declining at historically sharp rates," Nikkei said in a statement.
"It appears a global economic slowdown is likely to remain a headwind to growth in the second half of the year, as panellists mentioned softer demand in key export markets such as China , Europe and the U.S.," it noted, suggesting manufacturers are prepared to make further cuts to production if weaker demand conditions persist.
The reading had been released as the HSBC Taiwan Manufacturing PMI until June 2015 , when HSBC and Markit Economics ended their tie-up. Markit said on June 29 that Nikkei would assume sponsorship of the Taiwan survey and nine others. The Nikkei Taiwan PMI is compiled by U.K. -based research firm Markit Group Ltd. and is sponsored by Nikkei.
Write to Chester Yung at chester.yung@wsj.com
(END) Dow Jones Newswires
08-02-15 2231ET
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