Korea: Manufacturing PMI dips in July
The S&P Global South Korea Manufacturing Purchasing Managers’ Index (PMI) fell to 51.4 in July from 52.0 in June. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in manufacturing-sector operating conditions compared to the previous month.
Key drivers behind the latest PMI reading include softer rates of expansion in manufacturing output and total new orders, which both hit three-month lows. Exports, staffing levels and buying activity all rose in July, though firms faced the longest delivery times in a year and a half, primarily due to logistical disruptions in the Red Sea and Mainland China.
Input costs rose at the softest pace since April. In response, South Korean manufacturers modestly raised output charges to stay competitive. Business optimism strengthened at the start of the third quarter, fueled by hopes that the current uplift in demand, particularly from international markets, would be sustained and further accelerated by new product launches.