South Korea Manufacturing PMI August 2023

In August 2023, the S&P Global South Korea Manufacturing PMI decreased to 48.9, down from 49.4 in July. This decline indicates a worsening of the overall business conditions and marks the 14th consecutive month of downturn. Several key indicators, including output, new orders, exports, and purchasing, all dropped compared to July. Additionally, despite rising input costs, companies continued to reduce their output prices. While these declines in output and new orders aren't as severe as those witnessed during past crises like the pandemic and the global financial crisis, they are the longest-lasting in the history of this survey, spanning 16 and 14 months, respectively.

According to anecdotal evidence, the decrease in demand and output can be attributed to weakened domestic and international economic conditions. On a more positive note, employment remained stable, and there was optimism for the 12-month production outlook, which was the most positive since mid-2022. This optimism was driven by expectations of a recovery in both domestic and international demand.