Some very poor data from SK - IHS/Markit PMI

  • New export orders drop at their sharpest ever
  • future output index moves it its lowest ever

more to come

Joe Hayes, Economist at IHS Markit:

  • "South Korea's export-driven economy suffered immensely during April. We're seeing manufacturing production falling at the strongest rate since the global financial crisis.
  • "This doesn't come as any surprise, the key reason behind this is plummeting global demand and this was to be expected given the drastic measures taken so far around the world to stem the COVID-19 pandemic. Particular sectors look more vulnerable than others, however. Panel member reports suggest that automobile-related industries are being hit particularly hard by shutdowns overseas such as in North America and Europe, while severe supply chain dislocations mean that factories that do stay open are operating below capacity.
  • "Although China, South Korea's biggest export market, appears to be slowly re-opening for business, it's clear this will be far from sufficient to offset the severe weakness elsewhere. It's certainly going to be a challenge for South Korean policymakers to prop up an economy that's so reliant on global trade."
Some very poor data from SK -  IHS/Markit PMI

South Korea is ahead of the curve in its response to, and (ongoing) recovery from, the coronavirus outbreak compared to most other countries. What this means is that the poor data coming from SK will be repeated across the globe in the months ahead.