Korea: Improvement in manufacturing conditions softens in May
June 1, 2021
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 53.7 in May from April's 54.6, the softest reading in four months. That said, the index remained above the 50-threshold, signaling a continued improvement in business conditions from the previous month.
The slight deterioration came amid sustained, albeit slower growth for new orders and output. In addition, manufacturers raised staff levels, with employment growth in the sector accelerating from April. Consequently, pressure on existing capacity eased, amid slower increases in backlogs of work. On the price front, manufacturers faced the biggest rise in input costs since 2008, which was promptly passed on to clients in the form of record-high output price inflation. Meanwhile, manufacturing firms continued to hoard raw materials amid reports of supply disruptions and longer delivery times.