Korea skyline

Korea PMI October 2019

Korea: Manufacturing sector remains depressed in October

The IHS Markit manufacturing Purchasing Managers’ Index (PMI) ticked up marginally from 48.0 in September to 48.4 in October, and thus remained below the 50-threshold that separates contraction from expansion in the manufacturing sector.

The softer deterioration in October was driven by a slower fall in output as external headwinds seemingly spilled over into the domestic economy. Trade tensions between the U.S. and China on the one hand, and Korean and Japan on the other, continued to weigh on export sales, while total new orders also fell in October. On the price front, manufacturers dropped their output prices in an attempt to boost sales, despite input prices contining to climb. On a brighter note, business confidence hit a 16-month high in October but remained relatively tepid by historical standards.

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

“The slump in exports remains the true Achilles heel […] with headwinds coming from all directions. As well as US-Sino trade frictions, tensions with Japan and a stagnating European economy have significantly dented order book volumes at South Korean manufacturers.”

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