| Actual | Previous | |
|---|---|---|
| Index | 47.7 | 47.5 |
Highlights
South Korea's manufacturing PMI showed the sector contracted for the fourth consecutive month in May, with the survey's headline index increasing slightly to 47.7 from 47.5 in April. 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 continued to have a significant impact on conditions and sentiment.
Survey respondents reported the biggest fall in output in more than two years, the biggest fall in new orders in nearly five years and a second consecutive decline in new export orders. Respondents, however, also reported the first increase in payrolls in seven months and, perhaps reflecting the weaker starting point, now expect output to rise from current levels over the next twelve months. The survey shows a smaller increase in both input costs and selling prices.
Survey respondents reported the biggest fall in output in more than two years, the biggest fall in new orders in nearly five years and a second consecutive decline in new export orders. Respondents, however, also reported the first increase in payrolls in seven months and, perhaps reflecting the weaker starting point, now expect output to rise from current levels over the next twelve months. 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.
