SEOUL — South Korea's manufacturing activity shrank at a much slower pace in July, signalling that a gradual recovery in demand is gaining momentum on easing lockdowns, although the resurgence in infections remained a risk. The IHS Markit purchasing managers' index (PMI) rose to 46.9 in July from 43.4 in June, marking the highest reading since January. But that was still below the 50 threshold that separates growth from contraction. The headline index reflected slower rates of decline in major sub-indexes such as output, new orders and export orders but those still remained low by historical standards. "July data provides early signs of a turnaround across the South Korean manufacturing sector ... helped by reopening international supply chains and a gradual recovery in demand in key areas such as automotive production," IHS Markit economist Joe Hayes said.

Source: International New York Times August 03, 2020 00:33 UTC