| Actual | Previous | |
| Index | 53.9 | 52.3 |
Highlights
South Korea's manufacturing PMI showed stronger conditions in the sector in September, with the survey's headline index increasing to 53.9 from 52.3 in August. Respondents reported conditions remain supported by very strong demand for AI technology and semiconductors, with cost pressures also reported to have eased further.
Survey respondents reported the strongest increases in output and new orders in more than five years in September, while new export orders were reported to have risen at the fastest pace since 2011. Respondents also reported a third consecutive increase in payrolls while the survey's measure of business confidence rose to its highest level since January, before the Iran conflict. Respondents also reported that input costs and selling prices rose at a slower pace, despite higher fuel 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.