South Korea factory activity growth slows to 8-month low, PMI shows

South Korea's factory activity slowed to its weakest pace in eight months during October, according to a survey released on Monday. The purchasing managers index (PMI), published by S&P Global, dropped to 51.3 from 53.9 in September, marking the lowest level since February. Despite remaining above the 50 mark indicating expansion, the index signaled a notable deceleration.

October's PMI data revealed significant slowdowns in output and new order growth. Production increased at its weakest pace in the year thus far, while the rise in new orders was the least in four months. Many firms attributed these issues to slowing demand, raw material shortages, and high costs, said Usamah Bhatti, an economist at S&P Global Market Intelligence.

Output growth decelerated for the tenth consecutive month, while the increase in new orders was the least in four months, with automobile demand cited as a particular challenge. International sales were bolstered by demand from the Asia-Pacific region, but US demand was relatively subdued. In the third quarter, South Korea's economy expanded by 1.0%, outpacing market expectations, as a global AI chip boom fueled exports and investments.