FX.co ★ South Korea Manufacturing Downturn Eases in June

South Korea's manufacturing sector showed signs of stabilizing in June, as reflected by the S&P Global Manufacturing PMI, which increased to 48.7 from 47.7 in May. Though the index remained under the crucial 50-point threshold that indicates expansion rather than contraction, this marks the least severe decline in operating conditions over the past three months. Companies reported ongoing reductions in both output and new orders, albeit at a slower pace. Additionally, purchasing activity decreased, with manufacturers being cautious about accumulating surplus inventories. Employment figures declined once more, undoing May's slight rise. In terms of pricing, input cost inflation dropped to its lowest level in eight months, resulting in only a moderate rise in selling prices. Business confidence, however, experienced a substantial boost, with optimism about future activities reaching a 13-month peak. Companies anticipated stronger sales driven by new product launches and mass production, in addition to hopes for an improved domestic and geopolitical landscape.