The S&P Global South Korea manufacturing PMI showed conditions in the sector remained stagnant in December, with the survey's headline index falling slightly to 49.9 from 50.0 in November. Respondents also have a subdued assessment about the outlook over the next twelve months.

Survey respondents reported steady but weak output, new orders, and new export orders in December but slightly stronger growth in employment. The survey's measure of business confidence also fell to its joint-lowest level in 2023. Respondents reported input costs rose at a slower but still solid pace in December and that they increased selling prices only marginally.

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.

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.