| Actual | Previous | |
|---|---|---|
| Index | 48.7 | 47.7 |
Highlights
South Korea's manufacturing PMI showed the sector contracted for the fifth consecutive month in June but at a less pronounced rate, with the survey's headline index increasing to 48.7 from 47.7 in May. This survey has shown consistent weakness in the sector since mid-2024 but, reflecting this starting point, respondents this month reported greater optimism that global tensions will ease and conditions will improve over the next twelve months.
Survey respondents reported further declines in output, new orders and new export orders in June, but the fall in output was the smallest in five months. Payrolls were reported to have been cut after increasing previously but the survey's measure of business confidence rose to its highest level in more than a year. The survey shows a smaller increase in input costs, partly driven by exchange rate appreciation, and a slightly bigger increase in selling prices.
Survey respondents reported further declines in output, new orders and new export orders in June, but the fall in output was the smallest in five months. Payrolls were reported to have been cut after increasing previously but the survey's measure of business confidence rose to its highest level in more than a year. The survey shows a smaller increase in input costs, partly driven by exchange rate appreciation, and a slightly bigger increase in 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.
