| Consensus | Actual | Previous | |
|---|---|---|---|
| Index | 49.0 | 48.9 | 49.4 |
Highlights
The S&P Global South Korea manufacturing PMI's headline index fell from 49.4 in July to 48.9 in August, indicating that the sector contracted again, as it has for more than a year, and at a more pronounced pace. Current conditions remain very weak, but respondents report greater confidence that conditions are set to improve in coming months from this low base.
Survey respondents reported output and new orders fell at a sharper pace in August, while new export orders fell again after having risen in the previous month for the first time in more than a year. Payrolls were reported to have been stable in August, while the survey's measure of business confidence also increased to its highest level in more than a year. Respondents reported input costs rose in August after falling in July and that they lowered selling prices less aggressively than previously.
Survey respondents reported output and new orders fell at a sharper pace in August, while new export orders fell again after having risen in the previous month for the first time in more than a year. Payrolls were reported to have been stable in August, while the survey's measure of business confidence also increased to its highest level in more than a year. Respondents reported input costs rose in August after falling in July and that they lowered selling prices less aggressively than previously.
Market Consensus Before Announcement
The manufacturing PMI for August is expected to slow to 49.0 following July's 2.1-point rise to 49.4.
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.
