Korea: Manufacturing PMI clocks over two-year high in October
November 2, 2020
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose to 51.2 in October from September’s 49.8, crossing the 50-threshold that separates an improvement from a deterioration in the manufacturing sector over the previous month.
The print came as both new orders and output surged at the fastest pace in over seven years on increasing demand from the U.S. and China. Contrastingly, employment fell, albeit at a slower pace, marking the eighteenth consecutive month of job cuts and suggesting excess capacity. Turning to prices, input cost inflation increased markedly, leading firms to raise prices charged to clients for the first time since January.
On October’s result, Usamah Bhatti, economist at IHS Markit commented:“October data marks a clear improvement in South Korea's manufacturing sector. A gradual recovery has been seen as the impacts of the Covid-19 pandemic eased and outright expansions in both output and new orders were registered.”