S. Korea’s manufacturing PMI hits 51.9 in August

South Korea’s manufacturing sector experienced stronger growth in August, with the seasonally adjusted S&P Global South Korea Manufacturing Purchasing Managers’ Index (PMI) rising to 51.9 from 51.4 in July.

This marks the fourth consecutive month of expansion and reflects a modest overall improvement in operating conditions, according to the latest data published by S&P Global on Monday.

The latest data shows a notable increase in production levels, with output rising solidly midway through the third quarter. August’s growth marks the fifth straight month of output expansion, with the increase being the strongest since April 2021.

Companies attributed the growth in output to increasing new orders, with manufacturers noting a significant rise in incoming business, the report added.

This boost in demand was driven by higher customer confidence and new client acquisitions, particularly in the local market. However, growth in new export orders decelerated due to challenges in Mainland China and the US.

Due to improved economic conditions, the firms are optimistic about future production. They plan to mass produce new products, boosting confidence to a three-month high, as per the report.

Employment levels increased for the fourth straight month in August, with job creation reaching a six-month high. Firms noted that having enough staff kept pressure on capacity low, enabling manufacturers to handle current workloads.

Inflationary pressure persisted in the third quarter of 2024, but input price inflation slowed to its lowest level in eight months. Output prices also increased at a modest rate, the slowest so far in 2024.

Attribution: S&P Global South Korea Manufacturing PMI report

Subediting: M. S. Salama