| Actual | Previous | |
| Index | 53.6 | 52.6 |
Highlights
South Korea's manufacturing PMI showed improved conditions in the sector in April, with the survey's headline index increasing to 53.6 from 52.6 in March. This is the highest level for the index since February 2022. Respondents reported higher costs and supply delays due to the Iran conflict but also advised that they had increased production to stockpile ahead of potential further disruptions and cost increase.
Survey respondents reported the strongest increase in output since August 2024 and further growth in new orders, with respondents again citing the impact of new product launches. New export orders also rose but at a marginal pace. Respondents reported a second consecutive increase in payrolls in three months but the survey's measure of business confidence fell to a five-month low. Respondents also reported the biggest increases in input costs and selling prices since the survey was initiated in 2004.
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.