South Korea factory activity accelerates in April, cost pressures continue

Staff labour on metal frames at a building web site in central Seoul, South Korea, August 29, 2016. REUTERS/Kim Hong-Ji

SEOUL, Might 2 (Reuters) – South Korea’s manufacturing facility exercise accelerated in April, however price pressures as a result of Ukraine disaster and China’s strict lockdown measures continued to weigh closely on producers, a private-sector survey confirmed on Monday.

The S&P International buying managers’ index (PMI) rose to 52.1 in April from 51.2 in March, standing above the 50-mark threshold for the nineteenth straight month that signifies growth in exercise.

Output returned to growth after shrinking in March, with new orders rising at a quicker tempo, although these for exports continued to lower.

Producers have been seen constructing enter shares amid ongoing provide chain disruptions and excessive inflationary pressures, whereas passing larger prices onto prospects.

Output costs rose at a report tempo within the survey’s 18-year historical past, whereas enter costs rose on the quickest tempo in 5 months. Shares of purchases additionally elevated by essentially the most in a yr.

“Worth and provide pressures have been exacerbated by the continuing conflict in Ukraine and the re-imposition of strict COVID-19 restrictions throughout China, each of which stifled export orders partly attributable to port congestion and a scarcity of accessible containers,” stated Usamah Bhatti, economist at S&P International.

“As a part of efforts to guard themselves from future disruption and better price burdens, producers seemed to extend and retailer further shares of uncooked supplies and semi-finished items.”

Manufacturing corporations remained optimistic over the approaching yr for output, however the stage of optimistic sentiment fell to the bottom since December 2021.

Reporting by Jihoon Lee; Enhancing by Sam Holmes

Our Requirements: The Thomson Reuters Belief Ideas.