Korea: PMI maintains growth momentum in February
February 2, 2015
The manufacturing Purchasing Managers’ Index (PMI) held at January’s 51.1 in February, according to a release provided by HSBC in collaboration with Markit. January’s result had marked the first gain since August of last year and a return back above the 50-threshold that separates contraction from expansion. February’s reading sustains these gains and suggests continued improvement in the manufacturing sector.
The result in February was driven by growth in the output category, which expanded at the fastest pace since April 2013. The increase in production was underpinned by more favorable economic conditions, as well as a rise in both domestic and foreign new orders. Total new orders were up for a third consecutive month and new orders from abroad also increased. Higher output and stronger demand led manufacturers to increase new employment at the fastest pace in nearly a year.
Overall, Markit emphasized that, “operating conditions continued to improve in the South Korea manufacturing sector in February.”
Author: Carl Kelly, Economist