Tracking data from SK has become more important as global trade disputes (read US - China) have sapped growth.
Data on GDP from South Korea was poor, but just this week exports data was not as bad as expected.
This PMI has moved into expansion for the first time in 5 monhts 9ie. had the previous 5 months in contraction).
- The new orders sub index is up 49.5 (47.8 prior)
- new export orders, though, fell into contraction.
Mixed news
Commenting Joe Hayes, Economist at IHS Markit, which compiles the survey:
- "Supporting the rise in South Korea's Manufacturing PMI in April were stable output volumes and a renewed uptick to employment.
- Nevertheless, the underlying story remained gloomy. Job creation was flattered by hiring to comply with new working hour regulations, as opposed to supplementing greater demand.
- Sluggish sales in semi-conductor and automobile-related industries were reported by some panellists, while demand from Europe, China and Japan was also reportedly subdued.
- Some companies resorted to price cuts to drive sales.
- Consequently, business confidence remained subpar, with firms expressing little optimism that global export headwinds will fade any time soon."
