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Nikkei Taiwan PMI shows marginal improvement in June

Nikkei Taiwan PMI shows marginal improvement in June

Nikkei Taiwan PMI shows marginal improvement in June

Operating conditions faced by Taiwanese manufacturers improved for the first time in three months in June, partially supported by a renewed expansion in output, according to Nikkei Inc.’s latest PMI report released on Friday. The Nikkei Taiwan Purchasing Managers’ Index (PMI) shows the country’s seasonally adjusted PMI posting 50.5 in June, up from May’s seven-month low of 48.5 and above the 50.0 no-change threshold for the first time in three months.

Any figure greater than 50.0 indicates overall improvement of sector operating conditions. At the same time, further job creation was reported across the sector, while new export sales were broadly stable.

The report resonated with finance minister’s view in mid-June that the decline in export had slowed down in the same month while it is “not easy” to return to positive territory from its 16th consecutive month in the negative.

Taiwan’s Central Bank Governor Perng Fai-nan sounded a warning tone over Taiwan and global economy after Thursday's board meeting, saying the country would suffer a long period of stagnation as the country fails to shift its export-led growth model to a domestic consumption-driven economy.

The Nikkei Taiwan PMI index is an economic indicator derived from a monthly survey of new orders, output, employment, suppliers’ delivery times and stocks of purchases.