Korea skyline

Korea PMI August 2019

Korea: Manufacturing sector downturn eases in August

The IHS Markit manufacturing Purchasing Managers’ Index (PMI) increased to 49.0 in August from 47.3 in July, but remained below the 50-threshold that separates expansion from contraction in the manufacturing sector.

Output, employment and new orders all declined in August. That said, the contractions in new orders and output were more moderate than in the prior month. In contrast, the dip in employment levels was sharper in August compared to July. On the price front, a weaker currency and higher raw material costs were partly to blame for the increase in input prices. The weaker won and recent rifts with Japan kept business sentiment relatively subdued.

Commenting on August’s result, Joe Hayes, IHS Markit economist, noted:

“While the pick-up in the headline index suggests that pressures on South Korean manufacturers have abated to an extent, underlying data still portray a deeply challenging environment […] With an expansionary monetary policy bias becoming increasingly widespread across Asia, there is a glimmer of hope that Korean exports may see some respite in coming months.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest