| Actual | Previous | |
|---|---|---|
| Index | 49.9 | 50.3 |
Highlights
South Korea's manufacturing PMI showed renewed contraction in the sector in February after modest expansion in the sector in January, with the survey's headline index falling to 49.9 from 50.3. This survey has now shown weakness in the sector for six consecutive months. In addition to reporting ongoing weakness in current conditions, respondents reported another month of strong price pressures and remain wary about the outlook.
Survey respondents reported weak growth in output, new orders and new export orders in February, with improved demand from elsewhere in the region offset by weaker sales to Europe and the United States. Respondents also reported the biggest reduction in payrolls since mid-2022 and continue to expect below-average output growth over the next 12 months. The survey shows another big increase in input costs and the biggest increase in selling prices in more than a year.
Survey respondents reported weak growth in output, new orders and new export orders in February, with improved demand from elsewhere in the region offset by weaker sales to Europe and the United States. Respondents also reported the biggest reduction in payrolls since mid-2022 and continue to expect below-average output growth over the next 12 months. The survey shows another big increase in input costs and the biggest increase in selling prices in more than a year.
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.
