Korea: Manufacturing PMI picks up in October, but remains weak

The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 48.2 in October, up from September's 47.3. Consequently, the index moved closer to the 50.0 no-change threshold, signaling a softer deterioration in manufacturing sector operating conditions compared to the previous month.

The weak—albeit improved—print in October came as output, new orders, employment and input purchases continued to fall. This was likely due to a worsening economy at home and abroad, as well as rising input costs, which rose to a three-month high on a weaker won and rising raw material prices. More positively, output inflation declined to a 21-month low. Meanwhile, business sentiment fell to its lowest level in more than two years in October on fears regarding the global economy, rising costs and general uncertainty.

FocusEconomics panelists see GDP growth at 1.8% in 2023, which is down 0.1 percentage points from the previous month’s forecast. For 2024, GDP is seen expanding 2.4%.