South Korea’s HSBC manufacturing PMI number for June fell to 49.4. This is a decline from 51.0 in May.A reading below 50 signals contraction in the industry.
“Persistent global uncertainties continue to weigh on Korean manufacturing conditions,” said HSBC economist Ronald Man. “Should the slowdown in demand for Korean goods be sustained, manufacturing employment may start to contract.”
- First sub 50.0 PMI reading for five months
- Falling output prices recorded for eighth successive month
- Order book volumes contract, ending a four-month period of expansion
Weaker domestic and international demand reportedly contributed to a lower output level in the manufacturing sector. Panellists also stated that a fragile economic climate affected South Korean manufacturers. Although the rate of decline was only moderate, the respective index was the lowest since December 2011.