| Actual | Previous | |
|---|---|---|
| Index | 47.5 | 49.1 |
Highlights
South Korea's manufacturing PMI showed the sector contracted for the third consecutive month in April and at the sharpest pace since September 2022, with the survey's headline index falling to 47.5 from 49.1 in March. This survey has shown consistent weakness in the sector since mid-2024 but respondents this month reported that the escalation in global trade tensions and market volatility since early April has had a significant impact on conditions and sentiment.
Survey respondents reported a second consecutive fall in output, renewed weakness in new orders and the first fall in new export orders in six months. Respondents also reported the sixth consecutive reduction in payrolls while the survey's measure of confidence about the outlook fell to its lowest level since data were first collected in 2012, with the exception of the pandemic period. The survey shows a smaller increase in both input costs and selling prices.
Survey respondents reported a second consecutive fall in output, renewed weakness in new orders and the first fall in new export orders in six months. Respondents also reported the sixth consecutive reduction in payrolls while the survey's measure of confidence about the outlook fell to its lowest level since data were first collected in 2012, with the exception of the pandemic period. The survey shows a smaller increase in both input costs and selling prices.
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.
