South Korea's manufacturing sector expands for first time since February
TOKYO -- South Koreaâs manufacturing sector in September improved for the first time in seven months, driven by higher output and increase in new orders, according to a survey.
The Nikkei South Korea Manufacturing Purchasing Managersâ Index, or PMI, rose from 49.9 in August to 51.3 in September, rising above the 50-point line separating expansion from contraction for the first time since February.
Production volumes grew as well as new orders, although the improvement in demand came mostly from the domestic market. Export sales declined for a second successive month, with the survey suggesting that fewer orders were placed by clients in both China and Japan.
The survey also noted that the degree of optimism remained lackluster, with some companies anticipating weaker domestic and global economic growth.
âAn overall increase in new business suggests t hat current demand levels are being supported by the domestic market,â said Joe Hayes, Economist at IHS Markit, which compiles the survey. âMeanwhile, expectations of slower global growth weighed on business sentiment,â he added.
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