Korea: Manufacturing PMI deteriorates in June
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 51.3 in June, down from May’s 51.8. As a result, the index remained above the 50.0 no-change mark, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
The moderation of the PMI in June was due to supply shortages and rising input costs. Supplier delivery times increased by the greatest amount in six months and input prices rose at the fourth highest pace on record. This contributed to weaker growth in new orders and the heaviest fall in output in seven months.
Commenting on firms’ outlook, Usamah Bhatti, economist at S&P Global, said:
“South Korean manufacturers were increasingly concerned that the risks posed by ongoing shortages, disruptions and inflationary pressures would take longer to dissipate. As such, the degree of business optimism eased in June to the softest for eight months.”