South Korea’s manufacturing sector ended 2024 on a somber note as factory activity contracted further in December, according to the latest Purchasing Managers’ Index (PMI). The index dropped to 48.2, signaling a sharper downturn from November’s 49.1 and reflecting heightened challenges for businesses amid weakening global demand. A reading below 50 indicates contraction in activity.
Businesses reported declining output and new orders for the eighth consecutive month, prompting a more cautious outlook for 2025. Surveyed firms cited concerns over uncertain economic conditions and sluggish export demand as key drivers of their pessimistic sentiment. This marks one of the steepest downturns since the pandemic, signaling a rocky road ahead for South Korea’s manufacturing sector.
