| Actual | Previous | |
|---|---|---|
| Index | 51.4 | 52.0 |
Highlights
South Korea's manufacturing PMI expanded for the third consecutive month in July after contraction earlier in the year but at a slower pace, with the survey's headline index easing to 51.4 from 52.0 in June, which was its highest level since mid-2022. Respondents, however, reported greater confidence about the outlook, boosted by recent strength in external demand.
Survey respondents reported smaller increases in output and new orders in July but a seventh consecutive increase in new export orders, with respondents reporting strong demand from the US, Japan and south-east Asia. Respondents also reported a third consecutive increase in payrolls and are more confident about the outlook for output growth over the next 12 months. The survey shows a smaller increase in input costs and only a small increase in selling prices in July.
Survey respondents reported smaller increases in output and new orders in July but a seventh consecutive increase in new export orders, with respondents reporting strong demand from the US, Japan and south-east Asia. Respondents also reported a third consecutive increase in payrolls and are more confident about the outlook for output growth over the next 12 months. The survey shows a smaller increase in input costs and only a small increase in selling prices in July.
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.
