| Actual | Previous | |
|---|---|---|
| Index | 51.2 | 49.9 |
Highlights
The S&P Global South Korea manufacturing PMI showed a solid improvement in conditions in January, with the survey's headline index advancing to 51.2 from 49.9 in December. This is the first time the index has indicated expansion in the sector since June 2022. Respondents also have a more positive assessment about the outlook over the next twelve months.
Survey respondents reported a return to growth in both output and new orders in January for the first time since mid-2002, while new export orders were reported to have risen for the first time in six months. The survey shows modest but steady growth in employment and its measure of business confidence rose to a five-month high. Respondents reported input costs and selling prices both rose at a faster pace in January, with exchange rate weakness cited as a factor adding to cost pressures.
Survey respondents reported a return to growth in both output and new orders in January for the first time since mid-2002, while new export orders were reported to have risen for the first time in six months. The survey shows modest but steady growth in employment and its measure of business confidence rose to a five-month high. Respondents reported input costs and selling prices both rose at a faster pace in January, with exchange rate weakness cited as a factor adding to cost pressures.
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.
