Korea: PMI almost reaches the 50-threshold in December
January 2, 2015
The manufacturing Purchasing Managers’ Index (PMI) rose from 49.0 in November to 49.9 in December, according to a release provided by HSBC in collaboration with Markit. As a result of the improvement, the PMI has almost reached the 50-threshold that separates contraction from expansion.
The increase in December’s index was mainly due to a rise in new orders, which reversed the downward trend exhibited during the three previous months. Conversely, output and new exports fell in December for the ninth consecutive month in a row. Despite the improvement in December’s index, Markit pointed out that, “Korea's PMI readings suggest that economic growth in Q4 2014 will be a touch weaker than the previous quarter. Therefore, we think an accommodative stance by policymakers in Korea is still warranted to support the recovery.”
Author: Cecilia Simkievich, Economist