South Korea’s manufacturing purchasing managers’ index (PMI) posted at the crucial 50.0 no-change mark in April, up from 49.5 in March, a sign that the country’s manufacturing conditions have stabilised last month.
The headline Nikkei South Korea PMI reading of 50.0 in April followed contractions observed throughout the first quarter of this year.
Production at South Korean goods producers declined at a weaker rate in April. Moreover, the rate of contraction was softer than the average observed over the past two years.
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Where output decreased, firms mentioned a fall in international demand stemming from challenging global economic conditions.
“Manufacturing conditions in South Korea stabilized in April, having contracted throughout the first quarter of 2016. Production declined at only a slight rate, while new orders were broadly stable,” said Amy Brownbill, economist at Markit.
Brownbill added that companies were unable to compensate for greater cost burdens, as reports of increased competition and price negotiations from clients led firms to reduce their own charges further. – BusinessNewsAsia.com