Korea: Manufacturing PMI improves in April
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 52.1 in April, up from March’s 51.2. Consequently, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in business conditions compared to the previous month.
The improvement in the PMI in April was driven by a rebound in output and a pickup in new domestic orders. This said, the print was held back by rising external headwinds arising from the war in Ukraine and a Covid-19 outbreak in China. New export orders fell, while firms were hit by supply chain disruptions. Supply bottlenecks led firms to speed up stock purchases, as well as raise prices at the fastest rate on record.
Commenting on firms’ outlook, Usamah Bhatti, economist at S&P Global, said:
“Price and supply pressures emanating from the twin issues of the Ukraine war and China lockdowns […] dampened business confidence, as the level of positive sentiment eased to a four-month low.”