| Actual | Previous | |
|---|---|---|
| Index | 50.7 | 51.2 |
Highlights
The S&P Global South Korea manufacturing PMI showed the sector grew at a slower pace in February, with the survey's headline index falling to 50.7 from 51.2 in January. This indicates expansion in the sector for the second consecutive month after an extended period of contraction over late-2022 and 2023. Respondents also remain positive about the outlook over the next twelve months.
Survey respondents reported modest growth in output, new orders, and new export orders in February. The survey shows payrolls increased for the sixth consecutive month and at the fastest pace since October and respondents continue to expect higher output over the next twelve months. Respondents reported input costs and selling prices both rose at a solid pace in February, with exchange rate weakness again cited as a factor adding to cost pressures.
Survey respondents reported modest growth in output, new orders, and new export orders in February. The survey shows payrolls increased for the sixth consecutive month and at the fastest pace since October and respondents continue to expect higher output over the next twelve months. Respondents reported input costs and selling prices both rose at a solid pace in February, with exchange rate weakness again 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.
