Korea: PMI enters expansion territory in August
September 3, 2014
The manufacturing HSBC Purchasing Managers’ Index (PMI) inched up from 49.3 in July to 50.3 in August, which represented the highest level in five months. As a result of August’s increase, the PMI now rests just above the 50-threshold that separates expansion from contraction in the manufacturing sector.
According to HSBC, “Korea’s manufacturing conditions improved over the month for the first time since April 2014. Domestic demand increased following new product launches and is expected to be supported by recent fiscal and monetary stimulus measures. But export orders still contracted as demand from China and Japan decreased.” Therefore, HSBC expects Korea to have modest growth in Q3.