Korea: Manufacturing PMI worsens in January
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) ticked down to 49.8 in January from 50.1 in December, moving slightly below the 50-threshold that separates an improvement from a deterioration in the manufacturing sector over the previous month.
January’s print was driven by a fall in employment and a virtual standstill in production levels. That being said, new export orders increased in January, while business sentiment among Korean manufacturers improved to an almost two-year high, likely due to anticipation of new product launches. On the price front, both input and output prices increased in January.
Commenting on January’s result, Joe Hayes, IHS Markit economist, noted:
“While better export conditions will be a relief, a deteriorating domestic economy will put pressure on the Bank of Korea to inject another round of stimulus.”