South Korea Manufacturing PMI Remains in Contraction

The S&P Global South Korea Manufacturing PMI edged up to 48.3 in August 2025 from 48 in July, signaling only a marginal improvement while marking the seventh straight month of deteriorating business conditions. Output continued to decline as new order intakes fell sharply, with firms citing a sluggish domestic economy and ongoing global trade uncertainty as key drags on demand. Export sales registered their steepest drop since April, underscoring external pressures. Still, some manufacturers prepared for a potential recovery by modestly increasing input purchases and employment, supported by a generally optimistic outlook for the year ahead. On the price front, inflationary pressures intensified, with input costs rising at the fastest pace in five months midway through the third quarter.