| Actual | Previous | |
|---|---|---|
| Index | 48.5 | 48.2 |
Highlights
The S&P South Korea manufacturing PMI survey indicates that the sector has contracted for the seventh month in a row and at a similar pace, with the survey's headline index rising from 48.2 in December to 48.5 in January. Respondents reported another month of weak demand from both domestic and foreign clients but also indicated some optimism that conditions will soon improve amid reduced cost pressures.
Survey respondents reported further declines in output, new orders and new export orders in January, with some citing the impact of tighter monetary policy both at home and abroad. Payrolls, however, were reported to have risen for the first time since April 2022, while the survey's measure of business confidence rose to a four-month high. The survey suggests price pressures moderated in December, with input costs growing at the slower pace and respondents reporting a solid increase in selling prices.
Survey respondents reported further declines in output, new orders and new export orders in January, with some citing the impact of tighter monetary policy both at home and abroad. Payrolls, however, were reported to have risen for the first time since April 2022, while the survey's measure of business confidence rose to a four-month high. The survey suggests price pressures moderated in December, with input costs growing at the slower pace and respondents reporting a solid increase in selling prices.
Definition
The Purchasing Managers' Manufacturing Index (PMI) is based on monthly questionnaire surveys of selected companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sectors.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
