Korea skyline

Korea PMI February 2022

Korea: Manufacturing PMI hits highest reading since June 2021 in February

The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 53.8 in February from January’s 52.8. February’s result marked the strongest reading since June 2021. As such, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in business conditions compared to the previous month.

February’s higher print was driven by stronger growth in output and new orders, which grew at the fastest rates since July and June, respectively. This comes despite a recent surge in Covid-19 cases in Korea. A reopening of significant export destinations, such as the EU and US, following Omicron waves in those countries helped to support sales abroad. The robust improvement in business conditions led to a renewed increase in employment levels, while stocks of purchases continued to increase. That said, input inflation accelerated, contributing to the highest level of output inflation since April 2004. This suggests that supply bottlenecks may continue to be hindering production.

Commenting on firms’ outlook, Usamah Bhatti, economist at IHS Markit, said:

“South Korean manufacturers were positive that the risks posed by ongoing shortages and disruptions would ease and allow for a broad recovery in demand. As such, the degree of business optimism strengthened in February to the highest for a year. This is broadly in line with current IHS Markit estimates for industrial production to grow 2.2% in 2022.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest