Korea: Manufacturing PMI picks up in June
July 1, 2021
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 53.9 in June from May's 53.7. As a result, the index moved further above the 50-threshold, marking a nine-month streak of expansion and signaling a faster improvement in business conditions compared to the previous month.
The uptick came amid a sustained increase in output and faster growth in new orders, supported by solid demand both from abroad and at home. In addition, employment recorded the fourth month of expansion. Nevertheless, backlogs of work still increased, suggesting the need for further capacity building. Meanwhile, firms built up their stocks of inputs to prevent fallout from the shortage of raw materials and subsequent price increases, as well as to guarantee future production. Notably, the rise in input prices was promptly passed on to clients, with both input and output prices marking the steepest jumps on record. Finally, manufacturers reported a significantly optimistic production outlook for the coming year.