The Sign of Dwindling Exports

The Korea's media outlets scrambled to report that according to the Bank of Korea, Korea’s monthly export volume hit a record high in July, 28.8% up YOY.

And yet, the HSBC PMI suggests otherwise. The Korean August PMI is down to the 50 level.

It should be noted that Korea tends to report its statistics on a year over year basis, not on a sequential month to month basis.

Korea’s export contraction is what I have been concerned about all along amidst the global economic slowdown since Korea remains heavily dependent on exports.