S Korea factory activity contracts in March as weak domestic demand drags, PMI shows

SEOUL : South Korea’s manufacturing yell weakened in March as slowing domestic quiz offset sturdy in a foreign country sales, a non-public-sector look showed on Monday.

The buying managers index (PMI) for manufacturers in Asia’s fourth-ideally suited economy, compiled by S&P Global, stood at 49.8 in Marchon a seasonally adjusted basis, down from 50.7 in February.

The plunge below the 50-mark, which separates growth from contraction, modified into once the first in three months, with sub-indexes for output and contemporary orders slipping to 49.8 and 49.9, respectively.

“March PMI records signalled that South Korea’s manufacturing sector saw a renewed deterioration in working conditions. Both output and contemporary record volumes declined, as companies mentioned that frail quiz and a muted domestic economy held abet manufacturing and sales,” said Usamah Bhatti, economist at S&P Global Market Intelligence.

“One gleaming gentle, on the opposite hand, modified into once that export quiz rose for the third month in a row and at a stronger payment.”

The look showed export orders grew in Southeast Asia, North The United States and Japan. The findings align with unswerving records on South Korea’s total exports, which possess risen since October attributable to chip-led quiz.

On the opposite hand, domestic quiz has been weakening attributable to curiosity rates staying at elevated ranges for a extended length, elevating some issues relating to the lag of enterprise restoration.

Producers’ stocks of carried out goods and input purchases fell by the sharpest payment since December 2021 and April 2020, respectively, driven by companies’ efforts to decrease stock ranges to attach costs.

Gathered, South Korean manufacturers turned into more optimistic for the 365 days ahead on hopes for a sustained improvement in quiz, particularly within the semiconductor and automobile sectors, alongside a broader economic restoration.