In a sign of cooling industrial momentum, South Korea's Manufacturing Purchasing Managers' Index (PMI) slipped to 49.0 in December from 50.6 reported in November, according to the latest update from S&P Global. The reading, which fell below the benchmark of 50 that separates growth from contraction, signals a deceleration within the manufacturing sector.
The PMI decline points towards a potential slowdown in manufacturing activity as South Korea grapples with both global and domestic economic challenges. The transition from a modest expansion in November to a slight contraction in December highlights pressures such as fluctuating international demand, supply chain disruptions, and heightened economic uncertainties.
As of January 2, 2025, the updated PMI figures provide a cautious outlook for the months ahead, highlighting the need for strategies to mitigate external risks and shore up internal productivity. Economists and industry stakeholders will be keeping a close watch on forthcoming data to gauge whether this downward trend will persist or stabilize in the near future.
