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Moodyi's Taiwani's PMI improves in October.

Taipei, Nov. 20, 2009 (CENS)--Taiwan's purchasing managers' index rose from 57.5 in September to 59.8% in October, according to statistics from Moody's, a division of the Moody's Corporation.

A reading above 50 indicates that the number of respondents reporting improving conditions exceed the number reporting deteriorating conditions. The better reading indicates continued improvement in Taiwan's industrial production, although the survey of employment warns of continued stress on the labor market.

Moody's noted the purchasing managers' responses to activity measured by output, orders and export orders were particularly improved. This comes as no surprise, as Taiwan's industrial sector has staged a swift comeback since output plunged in the first months of this year. Industrial production in September was 37.5% above January's level.

The weaknesses in the Taiwanese PMI numbers concern employment and input prices. Purchasing managers grew less optimistic about both in October. Taiwan's labor market is under stress with a 6.1% seasonally adjusted unemployment rate in September. A deterioration of purchasing managers' view on staffing in October warns of further unemployment.

Though managers also grew pessimistic on input prices, it could be of lesser concern than the staffing issue. Import prices and wholesale prices have been higher month-on-month from June to August, but lower prices were recorded in September. Also import and wholesale prices were more than 10% lower year-on-year in September. ((BS)) (GE)

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Title Annotation:purchasing managers' index
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:Nov 20, 2009
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