South Korea manufacturing growth slows in October as PMI hits eight-month low
South Korea's manufacturing sector remains in expansion territory in October, but growth slows to its weakest pace in eight months as output and demand lose momentum. The latest survey shows softer automobile demand and relatively subdued U.S. orders, even as Asia-Pacific sales continue to provide support.
Highlights
- South Korea's October PMI fell to 51.3 from 53.9, marking an eight-month low but remaining above the expansion threshold for 11 months.
- October output growth slowed to a 10-month low and new order growth to a four-month low due to weaker demand, raw material shortages, and high costs.
- Despite slower manufacturing momentum, South Korea's GDP grew 1.0% in Q3, outperforming expectations, supported by robust Asia-Pacific export demand and a global AI chip boom.
October PMI signals weaker factory momentum
As reported by Reuters, citing S&P Global, South Korea's purchasing managers index stands at 51.3 in October, down from 53.9 in September and the lowest reading since February. The index remains above the 50 threshold that separates expansion from contraction for an 11th straight month.Usamah Bhatti, economist at S&P Global Market Intelligence, says the October data shows sharp slowdowns in output and new order growth, with production rising at its weakest pace so far this year. Firms frequently cite slowing demand, raw material shortages and high costs as factors weighing on performance.
Output growth is the slowest in 10 months, while the increase in new orders is the weakest in four months. Some manufacturers also report softer demand for automobiles.
Trade demand and broader economic backdrop
International sales continue to draw support from demand in the Asia-Pacific region, although demand from the U.S. is relatively subdued. That mix suggests external demand remains uneven for South Korean manufacturers despite continuing export activity.Separate economic data shows Asia's fourth-largest economy grows 1.0% in the third quarter, beating market expectations. A global AI chip boom helps lift exports and investment, offering a stronger backdrop for the industrial sector even as factory survey momentum cools.
Our earlier article on the Nasdaq 100’s AI-driven volatility explained how concerns over AI supply chains and higher financing costs triggered sharp index swings and weighed on semiconductor and AI-linked shares. It also noted the rebound looked fragile with the index still below key moving averages, keeping traders focused on downside risks and critical resistance levels for any sustainable recovery.
Latest PMI News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
