Korea: Manufacturing PMI improves slightly in June
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) ticked up to 43.4 in June from 41.3 in May, moving slightly closer the 50-threshold that separates an improvement from a deterioration in the manufacturing sector over the previous month.
June’s reading was driven by softer contractions in new orders and production, but remained severe nonetheless. Employment levels fell at a near survey record-rate in June, while business confidence remained severely depressed. Moreover, external demand remained hampered in June, despite an abatement from levels in March, the fall in demand from abroad was sharper than any drop experienced prior to the pandemic. On the price front, firms slashed output prices in part due to weak demand and as input prices fell—which was mainly due to lower raw material prices.