Korea: PMI inches up in November, but remains in contractionary territory
December 1, 2014
The manufacturing Purchasing Managers’ Index (PMI) inched up from 48.7 in October to 49.0 in November, according to a release provided by HSBC in collaboration with Markit. Despite the improvement, the PMI is still below the 50-threshold that separates contraction from expansion.
The slight increase in November’s index was mainly due to an improvement in the quantity of purchases, which grew for the first time in three months. The rest of the categories that comprise the index deteriorated compared to the previous month. Production and new orders, both from domestic and export firms, declined for the eight consecutive month. Moreover, Markit pointed out that, “payroll numbers fell for the second successive month in November. Furthermore, the rate of decline was solid and the fastest since January 2009. Almost 11% of panelists noted a fall in employment, with many attributing the latest decline to a decrease in production.”
Author: Cecilia Simkievich, Economist