South Korea's manufacturing activity contracted in December on weaker demand
The prolonged slump in new export orders, persisting for the fifth consecutive month, underscores the impact of subdued Chinese demand on South Korea's manufacturing landscape.
In a recent survey conducted by S&P Global, South Korea's manufacturing sector witnessed a contraction in December, primarily attributed to a decline in new orders, influenced by weakened demand from China. The Purchasing Managers Index (PMI) for South Korean manufacturers dipped slightly from 50.0 in November to 49.9 in December, signalling a contraction in factory activity.
The prolonged slump in new export orders, persisting for the fifth consecutive month, underscores the impact of subdued Chinese demand on South Korea's manufacturing landscape. S&P Global stated in a release that "anecdotal evidence highlighted weak Chinese demand" as a key factor contributing to the decline in new orders.
Industry experts expressed cautious optimism for 2024, pointing to the slight uptick in input purchases and employment growing faster in December.