South Korea’s factory activity growth quickens even as overseas demand slows, PMI shows
8:33 pm Sunday, September 01st, 2024
SEOUL (Reuters) – South Korea’s factory activity growth quickened in August, as output expanded at the fastest pace in more than three years despite a slowdown in overseas demand, a private survey showed on Monday.
The purchasing managers index (PMI) for manufacturers inAsia’s fourth-largest economy, compiled by S&P Global, stood at51.9 in August on a seasonally adjusted basis, up from 51.4 in July.
The index remained above the 50-mark, which separatesexpansion from contraction, for a fourth consecutive month.
“August provided a stronger picture for the South Korean manufacturing sector,” said Usamah Bhatti, economist at S&P Global Market Intelligence.
Output rose at the fastest pace since April 2021, as the increase in new orders quickened, while inflation in input prices slowed to an eight-month low, sub-indexes showed.
The improvement in demand was broadly led by stronger customer confidence and new client wins in the domestic market, according to the survey.
Expansion in new export orders, however, was the narrowest in six months, as strong demand in parts of the Asia-Pacific region, notably Japan, was offset by weakness in China and the United States.
Official trade data released on Sunday backed the survey’s findings, pointing to the 11th month of gains for South Korea’s August exports but with the pace of growth weakening as demand slowed for computer chips.
The PMI showed manufacturers’ optimism for the year ahead strengthened to a three-month high last month on hopes for sustained improvements in the domestic and global economies, also helped by plans for the launch and mass production of new products.
(Reporting by Jihoon Lee; Editing by Shri Navaratnam)
