Korea: Manufacturing PMI reaches eight-month high in September
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose to 49.8 in September from August’s 48.5, bordering the 50-threshold that separates an improvement from a deterioration in the manufacturing sector over the previous month.
The print came as output grew for the first time in seven months. In addition, the contraction in new orders was the softest in eight months. Contrastingly, employment fell at a sharper pace, marking the seventeenth consecutive month of job cuts. Turning to prices, input costs increased slightly, while firms discounted their selling prices to prompt demand.
On September’s result, Shreeya Patel, economist at IHS Markit commented:“September data was encouraging for the South Korean manufacturing sector as it neared stabilisation after a lengthy period of contraction. […] However, not all is positive, as the virus continued to impact firms. The combination of rising cases across key export destinations and subdued domestic demand weighed on operating conditions.”