Korea: Manufacturing PMI falls further in June
July 2, 2014
The manufacturing HSBC Purchasing Managers Index (PMI) fell from 49.5 in May to 48.4 in June, which represented the third consecutive drop in the index and the lowest level since August 2013. As a result, the PMI index fell further below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to HSBC, June’s result, “signaled the fastest rate of worsening in business conditions since August 2013.” HSBC added that output decreased sharply compared to the previous month. Responses to the June survey also showed that new business opportunities fell notably over May. In addition, new orders declined in June as result of weaker growth in consumption. On a positive note, employment growth continued. According to HSBC, “some South Korean manufacturers commented on changing their company structure, leading to higher payroll numbers”.
Author: Ricardo Aceves, Senior Economist