FX.co ★ South Korea Manufacturing PMI Remains in Contraction

In August 2025, the S&P Global South Korea Manufacturing PMI slightly increased to 48.3 from 48 in July. Despite this, it nonetheless marked the seventh consecutive month of declining business conditions. Output continued its downward trend as new orders significantly decreased. Firms attributed this decline to a sluggish domestic market and persistent global trade uncertainties impacting demand. Export sales recorded their sharpest downturn since April, highlighting external challenges. Despite these difficulties, some manufacturers took steps to prepare for a potential recovery by modestly boosting input purchases and staffing levels, buoyed by a generally positive outlook for the upcoming year. On the inflation front, pressures intensified, with input costs rising at the fastest rate in five months through the middle of the third quarter.