South Korean Manufacturing Orders And Output Fall At A Slower Rate
South Korean manufacturing PMI climbed to 47.4 in October, up from 45.7 last month.
However, the reading is still near a 43-month low. And any reading below 50 signals contraction.
Here are the key points from Markit:
Slower falls in output and new orders signalled
Manufacturers add to payroll numbers to greatest degree for over a year
Rise in input costs, but output charges cut again
"Manufacturing conditions in Korea are showing signs of stabilisation. But the recovery remains fragile," says HSBC economist Ronald Man. "Upward momentum is driven by expectations of higher demand over the coming months, keeping the industry vulnerable to external shocks. That said, provided recent stimulus filter through meaningfully across Korea and its key overseas markets, conditions in Korea's all important manufacturing sector may return to expansionary territory by year-end.”
Yesterday, South Korea reported that its industrial output climbed 0.8 percent in September, but this fell short of the 1.1 percent gain economists were expecting.
South Korea is one of the world's most important exporting nations.
It's also referred to as the "global canary in the coal mine" as it's exports serve as a proxy for the health of its trading partners.
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