| Actual | Previous | |
|---|---|---|
| Index | 47.8 | 48.4 |
Market Consensus Before Announcement
The S&P South Korea manufacturing PMI survey indicates that activity in the sector remains in contraction amid slowing global and domestic demand, with the survey's headline index falling to 47.8 in June after edging up to 48.4 in May from 48.1 in April. Production volumes posted the 14th straight monthly drop and order book volumes declined further, extending the current sequence of decline to a year.
Cost inflationary pressures eased in June, reaching the softest since the current sequence began three years ago. At the same time, factory gate charges were reduced for the second month in a row, with the latest decrease the quickest since September 2020.
Confidence among manufacturers in the year-ahead outlook dipped to the lowest level in 2023 to-date amid uncertainty regarding the timing of any recovery in demand as well as the likelihood of prolonged economic weaknesses.
Cost inflationary pressures eased in June, reaching the softest since the current sequence began three years ago. At the same time, factory gate charges were reduced for the second month in a row, with the latest decrease the quickest since September 2020.
Confidence among manufacturers in the year-ahead outlook dipped to the lowest level in 2023 to-date amid uncertainty regarding the timing of any recovery in demand as well as the likelihood of prolonged economic weaknesses.
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.
