The Compilation of the Purchasing Manager''s Index for Taiwan


Author:Chuang-Chang Chang




The Institute for Supply Management (ISM) began to produce the report on business (ROB) for the US since the early 1930s. The ROB, now known as the Purchasing Managers’ Index (PMI), has become one of the most widely known and watched indicators of business activity in the United States. Its concept has also been applied in the worldwide, and more than forty countries and regions have conducted the PMI survey. The PMI is considered as a leading indicator for Gross Domestic Product (GDP) growth or decline. Many international investors and central banks worldwide use the PMI to form an opinion on economic health, given their insight into sales, employment, inventory and pricing. Even Mainland China has published the PMI report on a regular basis since 2005. As Taiwan belongs to sea-island countries, and its exports contribute more than domestic demand, it is necessary and imminently to compile an official PMI for Taiwan. The National Development Council (NDC) authorized the Chung-Hua Institution for Economic Research (CIER) to compile the PMI in the end of 2011. The PMI data has been compiled since May 2012, and was publicly released in November 2012 for the first time. Seasonally adjusted PMI was then firstly released in April 2018. The valid sample size is now much greater than 300 and the response rate is about 85%~90%. As Taiwan non-manufacturing industry has accounted for over 70 percent of Taiwan Nominal GDP, Taiwan Non-Manufacturing Index (Taiwan NMI) has been compiled preliminary in September 2013 and officially published in January 2015, the valid sample size is now increasing to 270 and above. The large valid sample size and the high response rate of both PMI and NMI guarantee a more accurate snapshot of Taiwan economy. To serve as a reference for government, industries and other related academic institutes, this report presents the summary statistics of the sample, the questionnaire for the Taiwan manufacturing and non-manufacturing sector, the comparison between PMI and macroeconomic data, press releases, Report on Business (ROB), the raw data and seasonal factors for the past twelve months.