South Korea’s manufacturing PMI fell to 49.9 in January from 50.1 a month ago.Any reading above 50 signals growth in the manufacturing sector.
Here are the key points from Markit:
- Headline PMI signals little change in manufacturing conditions
- Output and new orders fall, but staffing levels increase
- Modest rise in input costs, but output charges cut again
From HSBC’s Ronald Man:
“Korea’s latest manufacturing conditions highlight the country’s dependence on trade. New export orders gained momentum and employment growth rose in anticipation of higher output over the coming months. However, the domestic economy remains weak and policymakers in Seoul will likely maintain an easing stance to keep domestic demand firm until 2H 2013, when export growth recovers meaningfully and generates an export-led recovery.”
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