FX.co ★ South Korea Factory Slump Deepens in July

In July, South Korea's manufacturing sector experienced a continued downturn, with the S&P Global Manufacturing PMI dipping to 48, down from June's 48.7, marking its sixth consecutive month of decline. Both output and new orders decreased more sharply, largely due to growing weaknesses in domestic demand. Consequently, companies reduced their hiring and purchasing activities, and business sentiment turned negative for the first time in three months. Additionally, input cost inflation accelerated, with average cost burdens rising at the quickest rate since March. Usamah Bhatti, an Economist at S&P Global, noted, "Production volumes and new orders decreased more significantly than they did in June." He attributed this trend to a weakening domestic economy, further exacerbated by the implications of US tariff policies.