Korea: Manufacturing PMI falls into contraction territory in May
June 2, 2014
The manufacturing HSBC Purchasing Managers Index (PMI) inched down from 50.2 in April to 49.5 in May, which represented the third consecutive drop in the index. As a result, the PMI index fell below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to HSBC, May’s fall reflected that Korean manufacturers reported lower new orders, a decline in stocks of finished goods and a decrease in both input and output prices. Despite the fall in output, the employment sub-category rose over the previous month. HSBC added that “Korea’s economic outlook remains challenging.”
Author: Ricardo Aceves, Senior Economist