South Korea’s factory activity logs ninth straight month of expansion: PMI

[SEOUL] South Korea’s factory sector recorded a ninth consecutive month of activity growth in August, underpinned by robust export demand, a survey showed on Tuesday (Sep 1).

The purchasing managers index (PMI), published by S&P Global, stood at 52.3 in August, down from 53.1 in July, but staying above the 50 mark separating expansion from contraction for a ninth consecutive month.

Manufacturers continued to report healthy new orders with a sub-index measuring new orders at 53.5 in August compared with 54.8 in July, according to the survey.

“While August PMI data signalled an easing of overall new order growth across South Korean manufacturers, a robust increase in export demand – the strongest recorded since November 2020 – is an encouraging sign that firms are still benefitting from the current AI and semiconductor supercycle,” said David Owen, an economist at S&P Global Market Intelligence.

Asia’s fourth-largest economy grew faster than expected in the second quarter, driven by a semiconductor export boom that offset a decline in construction investment. REUTERS