Korea: Manufacturing PMI records worst reading since September 2020 in July
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 49.8 in July, down from June’s 51.3. July’s result marked the worst performance since September 2020. Consequently, the index dropped below the 50.0 no-change mark, signaling a deterioration in business conditions from the previous month.
The fall in the PMI into contraction territory in July was driven by a worsening of both the supply and demand side situations. Material shortages and high input costs led output volumes to fall at the fastest pace in nine months. Simultaneously, demand also declined as new orders fell into contractionary territory for the first time since September 2020. More positively, there were signs that supply pressures and input price inflation might have peaked, with the latter easing to a four-month low.