XM does not provide services to residents of the United States of America.

S.Korea factory activity steadies for first time in 17 months, still fragile

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>S.Korea factory activity steadies for first time in 17 months, still fragile</title></head><body>

By Jihoon Lee

SEOUL, Dec 1 (Reuters) -South Korea's factory activity showed signs of steadying for the first time in 17 months in November, but business conditions remained weak with softening overseas demand and fading optimism among manufacturers, a private survey showed on Friday.

The purchasing managers index (PMI) for South Korean manufacturers, compiled by S&P Global, stood at 50.0 in November on a seasonally adjusted basis, up from 49.8 in October.

The 50-mark separates expansion from contraction on a monthly basis. The factory gauge had contracted for 16 straight months through October, the longest downturn in the survey's history that started in April 2004.

"November PMI data signalled that South Korea's manufacturing sector saw operating conditions stabilise, ending a sequence of declines that began in July 2022," said Usamah Bhatti, economist at S&P Global Market Intelligence.

"That said, anecdotal evidence from panel members indicated that these positive movements masked underlying weaknesses," Bhatti said.

Sub-indexes showed that declines in output and new orders softened to the mildest in 19 months and 16 months, respectively.

However, overseas orders fell by the most in five months, with demand weakening in key markets, most notably mainland China and North America.

Amid sluggish demand, manufacturers registered no change in backlogs of work in November, after 12 months of decline.

South Korea's economy fared better than expected in the third quarter with the expansion underpinned by exports. Its growth is expected to weaken to a three-year low this year, before picking up next year.

On the inflation front, output prices rose in November at the fastest rate in 10 months, as firms responded to higher cost burdens. Input prices rose for the fourth straight month, but the pace softened from the previous month.

Manufacturers' optimism for future output weakened in November to the lowest level in five months amid concerns about continued domestic and global economic weakness.

Reporting by Jihoon Lee; Editing by Kim Coghill


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.