The manufacturing sector in South Korea contracted at a faster pace in April, the latest survey from Markit Economics showed on Monday, with a six-month low PMI score of 48.8.
That’s down from 49.6 in March, and it moves further beneath the boom-or-bust level of 50 that separates expansion from contraction.
“Latest data signaled worsening operating conditions in the South Korean manufacturing sector. Both production and new orders contracted for the second straight month, with reports of an unstable domestic economy leading to poor demand conditions,” said Markit economist Amy Brownbill.
New orders declined for the second straight month, alongside a fall in production. Subsequently, manufacturers reduced their staffing levels in April, marking the end of a four-month period of growth. Meanwhile, downward pressures on both input and output prices were evident in April.
Manufacturing production contracted for the second month running in April. The rate of decrease was modest overall, but nevertheless faster than the average over the past 12 months.
Subsequently, new orders from abroad declined in April and at the quickest rate since October 2014. Firms linked the latest decrease to poor market conditions, with some commenting on reduced trade volumes with Europe and Russia.