By Jihoon Lee
SEOUL (Reuters) – South Korea’s manufacturing exercise weakened in March as slowing home demand offset sturdy abroad gross sales, a private-sector survey confirmed on Monday.
The buying managers index (PMI) for producers in Asia’s fourth-largest economic system, compiled by S&P World, stood at 49.8 in Marchon a seasonally adjusted foundation, down from 50.7 in February.
The autumn under the 50-mark, which separates enlargement from contraction, was the primary in three months, with sub-indexes for output and new orders slipping to 49.8 and 49.9, respectively.
“March PMI knowledge signalled that South Korea’s manufacturing sector noticed a renewed deterioration in working circumstances. Each output and new order volumes declined, as corporations talked about that weak demand and a muted home economic system held again manufacturing and gross sales,” stated Usamah Bhatti, economist at S&P World Market Intelligence.
“One vibrant mild, nevertheless, was that export demand rose for the third month in a row and at a stronger fee.”
The survey confirmed export orders grew in Southeast Asia, North America and Japan. The findings align with official knowledge on South Korea’s total exports, which have risen since October due to chip-led demand.
Nevertheless, home demand has been weakening attributable to rates of interest staying at elevated ranges for a protracted interval, elevating some issues concerning the tempo of financial restoration.
Producers’ shares of completed items and enter purchases fell by the sharpest fee since December 2021 and April 2020, respectively, pushed by corporations’ efforts to cut back stock ranges to avoid wasting prices.
Nonetheless, South Korean producers turned extra optimistic for the yr forward on hopes for a sustained enchancment in demand, significantly within the semiconductor and automotive sectors, alongside a broader financial restoration.
(Reporting by Jihoon Lee. Enhancing by Shri Navaratnam)