Korea: October PMI remains virtually unchanged in contractionary territory
November 5, 2014
The manufacturing Purchasing Managers’ Index (PMI) inched down from 48.8 points in September to 48.7 points in October, according to a release provided by HSBC in collaboration with Markit. The PMI is still below the 50-threshold that separates contraction from expansion.
The slight decrease in October’s index was mainly due to a deterioration in both output and new orders compared to the previous month. According to HSBC, “manufacturers signaled a decline in output for the seventh month in a row, though the rate of decrease eased from the previous month.” New orders declined mainly due to a drop in new businesses from international markets, and input prices dropped at the fastest pace since June 2013.
Author: Cecilia Simkievich, Economist