Korea: Manufacturing PMI rises in September
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 52.4 in September from August’s 51.2. As such, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
The uptick came amid marginal expansion in production, amid reportedly higher orders for goods, especially from international clients, which drove the print. Meanwhile, manufacturing firms filled their ranks to face the need for higher capacity, but employment levels grew at a similar rate to that of August, weighed down by voluntary resignations. That said, pressure on capacity eased as backlogs grew at a softer rate. On the price front, input prices kept on growing in September, and were promptly passed on to clients.
On the outlook, Usamah Bhatti, economist at IHS Markit, said:
“Goods producers remained confident that output would rise over the coming 12 months, however some firms voiced concerns that sustained disruption to supply chains, particularly in the key semiconductor industry and in the wider manufacturing sector would act as a drag on the recovery if issues remain unresolved until 2022. As a result, business confidence eased to the softest level reported since October 2020.”