South Korea’s Manufacturing Sector Faces Steep Contraction, Posing Challenges for Economic Recovery
Port of Busan, South Korea (data map)
Foreign Network, July 3rd – In a recent report by Reuters, it was revealed that South Korea’s manufacturing activity experienced a sharp decline in June, exacerbating concerns about the country’s economic revival. S&P Global’s adjusted Purchasing Managers Index (PMI) indicated that June marked the 12th consecutive month of contraction, setting a record low for the industry.
The PMI for South Korea fell to 47.8 in June, down from May’s 48.4, reaching its lowest level in three months. What’s more, this index has remained below 50 since July 2022, representing the longest stretch since the survey’s inception in April 2004. The decline in output and new orders was the steepest in eight and six months, respectively, while new export orders plummeted, posting their largest decline in five months. These factors contributed to the overall decline in the main index. Additionally, South Korea’s economy experienced sluggish growth in Q1 of this year, indicating that the recovery efforts are still grappling with weak external demand.
Economist Usamah Bhatti from S&P Global Market Intelligence commented on the PMI survey data, stating that operating conditions in South Korea’s manufacturing sector have remained lackluster throughout mid-2023. Business confidence has plummeted to an all-time low as concerns surround the possibility of a prolonged economic downturn.
(Hou Xingchuan, Foreign Network)
Editors: Hou Xingchuan, Li Meng
Editor:
Disclaimer: The opinions expressed in this article are solely those of the author. Sohu is an information release platform, and Sohu only provides information storage space services.
Port of Busan, South Korea (data map)
Foreign Network, July 3rdAccording to a Reuters report on the 3rd, the adjusted manufacturing purchasing managers index (PMI) released by S&P Global on the 3rd showed that South Korea’s manufacturing activity shrank faster in June. The 12th straight month of contraction was a record, underscoring the struggle for a robust recovery in the South Korean economy.
South Korea’s PMI fell to 47.8 in June from 48.4 in May, the lowest level in three months. South Korea’s PMI has remained below 50 since July 2022, the longest stretch since the survey began in April 2004. Output and new orders posted their biggest declines in eight and six months, respectively, while orders new exports also posted their biggest fall in five months, dragging the main index lower. South Korea’s economy grew slowly in the first quarter of this year, data showed, with the recovery still struggling due to weak external demand.
Usamah Bhatti, economist at S&P Global Market Intelligence, said June PMI survey data suggested operating conditions in South Korea’s manufacturing sector remained sluggish through mid-2023. Business confidence has now fallen to an all-time low amid concerns that the economic downturn will last longer than expected. (Hou Xingchuan from Foreign Network)
Editors in charge: Hou Xingchuan, Li Meng
Editor:
Disclaimer: The opinion of this article only represents the author’s own Sohu is an information release platform, and Sohu only provides information storage space services.
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