Korea: Manufacturing PMI deteriorates in October
November 1, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) came in at 50.2 in October, down from September's 52.4. October's result marked the worst performance since September 2020. However, the index remained above the 50-threshold, pointing to a moderating improvement in business conditions from the previous month.
The downtick came amid supply disruptions, which led to the biggest fall in production since July 2020. Moreover, new orders growth slowed amid weaker international demand. Meanwhile, employment levels fell for the first time since February. On the price front, input price growth accelerated for the first time in four months, leading firms to pass the costs on to clients.
On the outlook, Usamah Batti, economist at IHS Markit, noted:
“South Korean manufacturers noted that ongoing shortages and disruptions impacted the outlook for output over the coming 12 months. The degree of confidence dipped in October, and was the softest signaled since September 2020”