Korea: PMI falls back into contraction territory in September
October 1, 2014
The manufacturing Purchasing Managers’ Index (PMI) fell from 50.3 in August to 48.8 in September, according to a release provided by HSBC in collaboration with Markit. The reading came in below the 50-threshold that separates expansion from contraction and represents a return to contraction territory following a slight improvement in August.
The decline in September’s index was mainly due to a deterioration in the order books sub-component. According to HSBC, “new orders fell for the fourth time in five months, recording the fastest rate of decline in three months.” Moreover, new exports orders dropped sharply in September, marking the largest decline since August 2013.
Author: Cecilia Simkievich, Economist