US Markets
South Korea Factory Sector Strengthens in April: PMI Report
South Korea's manufacturers faced rising costs but also stronger demand in April, reported S&P Global on Monday.The seasonally adjusted South Korea manufacturing purchasing managers index (PMI) logged at 53.6 in April, up from 52.6 in March, and striking further above the 50-mark that separates growth from contraction, said S&P Global, citing its monthly survey.South Korea factory-sector "expansion was the strongest since February 2022," advised S&P Global.Demand for South Korean product rose in April, although some customers may have ordered goods as they were concerned about future supply crunches generated by the Persian Gulf war and the blockades on the Strait of Hormuz, said S&P Global.In fact, South Korean manufacturers reported in April they they were depleting inventories and stockpiles to meet demand, and also experienced rising backlogs of work, reported S&P Global.In addition, factory managers faced rising costs of operation in the April."The rate of input price inflation accelerated substantially on the month and reached a series record high," said S&P Global. "Panelists widely attributed the rise to surging raw material prices, which were exacerbated by delivery delays and supply shortages. Oil and fuel were mentioned in particular as being up in price."The nation's factory managers generally passed costs of operation on to customers, noted S&P Global.Citing Persian Gulf turmoil, South Korean factory manager "confidence was the softest for five months amid concerns that the conflict may be prolonged," reported S&P Global.The South Korea manufacturing PMI was compiled by S&P Global from surveys sent to 400 manufacturers from April 9 though April 22.
^KOSPI