S.Korean manufacturing sector stabilises in April after contracting throughout Q1

Data released by Markit showed that South Korea's headline PMI posted at the crucial 50.0 no-change mark in April, up from 49.5 in March. After having worsened in the previous three months, uptick in April signalled a stabilisation in operating conditions at South Korean manufacturers.

While new orders remained broadly stable, employment increased marginally and input prices rose at sharpest rate in over three years. Inflationary pressures intensified to the greatest extent since March 2013, while competition and price negotiations with clients encouraged firms to lower their charges further.

Firms were more optimistic towards their hiring policies with employment increasing during the month. Manufacturers hired additional staff in April, offsetting the decrease seen in the previous month. Meanwhile, input stocks decreased at the slowest rate in the current four-month sequence of contraction.

"Data shows positive signs for the goods producing sector, and suggests that the official manufacturing production index will remain in positive territory." notes Amy Brownbill, Economist at Markit.