Korea: PMI deteriorates further in April
May 4, 2015
The manufacturing Purchasing Managers’ Index (PMI) fell from 49.2 in March to 48.8 in April, according to a release provided by HSBC in collaboration with Markit. April’s result is the weakest in six months and sets the index further below the 50-threshold that separates contraction from expansion.
The deterioration in April was driven by a second consecutive contraction in both output and new orders. Output fell amid unstable economic conditions and new orders were down due to weak global and domestic demand. Export orders declined at the fastest pace since October 2014. Moreover, manufacturers decreased employment levels for the first time this year. Falling sales volumes and reduced production requirements led to the downsizing.
Overall, Markit emphasized that, “latest data signaled worsening operating conditions in the South Korean manufacturing sector.”
Author: Carl Kelly, Economist