Korea PMI

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Korea: PMI deteriorates further in June

July 1, 2015

The manufacturing Purchasing Managers’ Index (PMI) fell from 47.8 in May to 46.1 in June, according to a release provided by Nikkei in collaboration with Markit. June’s result is the weakest since September 2012 and sets the index further below the 50-threshold that separates contraction from expansion.

The deterioration in June was driven by contractions in production and new orders. Both fell at the fastest pace in almost three years. Production fell amid a challenging economic environment and new orders were down due to slumping client demand. Manufacturers signaled the MERS outbreak as a top driver behind weakening domestic demand. Export orders declined at the fastest rate this year, underpinned by low global demand. Moreover, given worsening conditions, manufacturers cut employment levels the most since November of last year.

Overall, Markit emphasized that, “June PMI data signalled a further deterioration in operating conditions at South Korean manufacturers.”

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 3.8% in 2015, which is down 0.2 percentage points from last month’s forecast. In 2016, the panel expects growth in fixed investment to increase 3.8%.


Author:, Economist

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Korea PMI June 2015

Note: HSBC Korea Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Nikkei and Markit


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