| Actual | Previous | |
|---|---|---|
| Index | 47.6 | 48.5 |
Highlights
The S&P South Korea manufacturing PMI survey indicates that the sector contracted for the ninth consecutive month in March and at a sharper pace, with the survey's headline index falling to 47.6 from 48.5 in February. Respondents reported another month of weak demand from both domestic and foreign clients and renewed price pressures, but are more confident about the outlook.
Survey respondents reported output fell in March at the fastest pace in five months and that there were more pronounced declines in new orders and new export orders. The survey shows payrolls were cut for the sixth time in the last seven months yet the survey's measure of business confidence rose to its highest level since July 2022. The survey suggests price pressures accelerated in March, with input costs growing at at a faster pace for the first time in five months and respondents also reporting a moderate increase in selling prices. Respondents cited higher raw material prices and a weaker exchange rate as factors pushing up input costs.
Survey respondents reported output fell in March at the fastest pace in five months and that there were more pronounced declines in new orders and new export orders. The survey shows payrolls were cut for the sixth time in the last seven months yet the survey's measure of business confidence rose to its highest level since July 2022. The survey suggests price pressures accelerated in March, with input costs growing at at a faster pace for the first time in five months and respondents also reporting a moderate increase in selling prices. Respondents cited higher raw material prices and a weaker exchange rate as factors pushing up input costs.
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.
