Korea: Manufacturing PMI records worst reading since July 2020 in August
September 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) fell to 47.6 in August from July's 49.8. August's result marked the worst reading since July 2020. As such, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in business conditions in the private sector compared to the previous month.
The fall of the PMI deeper into contractionary territory in August was driven by output and new orders contracting at the fastest paces since June 2020. This was due to the worsening domestic and global outlooks in recent months. More positively, weaker demand also appeared to ease pressure on supply capacity, with delivery times, backlogs and input and output inflation all moderating in August. Moreover, employment levels stabilized after three months of decline.
S&P Global’s Usamah Bhatti said:
“The outlook for output over the coming year dimmed in August as concern that the economic slowdown would deepen grew among manufacturers, while businesses also noted the lingering impact of inflation and the war in Ukraine. As a result, the level of positive sentiment eased to the lowest since October last year.”