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Economy 57 minutes ago (2022-08-31 08:41PM EST)
© Reuters. FILE PHOTO: A factory is seen in Incheon, South Korea, May 30, 2016. Reuters/Kim Hong-Ji
SEOUL, Sept. 1 (Reuters) – South Korea’s factory activity shrank the most in August, a private-sector survey released on Thursday showed, as a Inflation, rising interest rates and the war in Ukraine have led to weak demand, slowing growth in two years.
The S&P Global (NYSE: ) Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 47.6 in August from 49.8 in July, below the factory for the second month in a row The dividing line between expansion and contraction in activity is at 50 and hit its lowest level since July 2020.
Output and new orders fell the most since June 2020, while new export orders fell the most since July 2020.
“Business Regular S&E Economist Usamah Bhatti: P Global Market Intelligence.
“As manufacturers respond to the slowdown Fears will deepen, with output prospects for the year ahead dimmed in August, while businesses also note the lingering effects of inflation and the war in Ukraine. “
Weak demand did help to ease price pressures. Input and output prices rose at their slowest pace in 19 and 18 months, respectively.
Supply chain issues are also showing signs of improvement. Supplier lead times (indicating disruption) have worsened, but by the least in 21 months, while backlogs are reduced for the first time in 22 months as businesses Able to do the job at hand despite weak new product inflows
Manufacturers remain optimistic about production volumes for the year ahead, but the level of optimism is the lowest since October last year.