| Actual | Previous | |
|---|---|---|
| Index | 52.0 | 51.6 |
Highlights
The S&P Global South Korea manufacturing PMI shows further improvement in conditions in June after contraction earlier in the year, with the survey's headline index increasing from 51.6 in May to 52.0, its highest level since April 2022. Respondents, however, reported less confidence about the outlook, with exchange rate weakness and higher raw material prices putting pressure on margins.
Survey respondents reported a strong increase in output, reflecting the biggest increase in new orders in more than three years and a further pick-up in new export orders. Respondents have also reported a second consecutive increase in payrolls and continue to expect positive output growth over the next twelve months, albeit at a less pronounced rate than previously. The survey shows the biggest increase in input costs in eight months but a smaller increase in selling prices in June.
Survey respondents reported a strong increase in output, reflecting the biggest increase in new orders in more than three years and a further pick-up in new export orders. Respondents have also reported a second consecutive increase in payrolls and continue to expect positive output growth over the next twelve months, albeit at a less pronounced rate than previously. The survey shows the biggest increase in input costs in eight months but a smaller increase in selling prices in June.
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.
