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| Index | 51.1 | 51.2 |
Highlights
South Korea's manufacturing PMI showed steady conditions in the sector in February, with the survey's headline index easing to 51.1 from 51.2 in January. This remains close to the highest level for the index since August 2024.
Survey respondents reported a second consecutive increase in output and further growth in new orders and new export orders in February, with respondents again citing the impact of new product launches and stronger external demand. Respondents, reported a biggest fall in in payrolls since 2020 but the survey's measure of business confidence relatively strong. The survey shows stronger growth in input costs and selling prices, with weakness in the exchange rate widely cited as a key source of cost pressures.
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.