The S&P Global South Korea manufacturing PMI shows renewed contraction in the sector in March after expansion in the two previous months, with the survey's headline index falling to 49.8 from 50.7 in February. Conditions remain better than they were in mid-2023 and respondents for now remain positive about the outlook over the next twelve months.

Survey respondents reported small declines in output and new orders in March but a slightly firmer increase in new export orders. The survey also shows payrolls increased for the seventh consecutive month and respondents have also revised up their expectations for output growth over the next twelve months. The survey shows a bigger increase in input costs in March but a more modest increase in selling prices.

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.