By Jihoon Lee
SEOUL (Reuters) – South Korea's manufacturing exercise weakened in March as slowing home demand offset sturdy abroad gross sales, a non-public sector survey confirmed on Monday.
The buying managers' index (PMI) for producers in Asia's fourth-largest financial system, compiled by S&P International, was 49.8 in Marchon on a seasonal foundation, up from 50.7 in February.
The autumn under the mark of fifty, which separates growth from contraction, was the primary in three months, with sub-indices for manufacturing and new orders slipping to 49.8 and 49.9, respectively.
“March PMI information indicated that South Korea's manufacturing sector noticed a renewed deterioration in working situations. Each the quantity of manufacturing and new orders declined, as firms reported that weak demand and a muted home financial system are holding again manufacturing and gross sales,” mentioned Usamah Bhatti, PMI economist. S&P International Market Intelligence.
“One vibrant gentle, nonetheless, was that export demand elevated for the third month in a row and at a stronger tempo.”
The survey confirmed elevated export orders in Southeast Asia, North America and Japan. The outcomes are according to official information on South Korea's general exports, which have risen since October due to chip-led demand.
Nonetheless, home demand has been weakened on account of rates of interest remaining at excessive ranges for a chronic interval, elevating some issues in regards to the tempo of financial restoration.
Shares of producers of completed items and purchases of inputs fell by the strongest fee since December 2021 and April 2020, respectively, led by efforts by firms to cut back stock ranges to save lots of prices .
Nonetheless, South Korean producers have turn into extra optimistic for the yr forward on the hope of a sustained enchancment in demand, notably within the semiconductor and automotive sectors, alongside a broader financial restoration.
(Reporting by Jihoon Lee. Modifying by Shri Navaratnam)
