SEOUL, Aug 1 Reuters A protracted slump in South Korea39;s factory activity eased in July as export orders rose for the first time in nearly 112 years, a private business survey showed on Tuesday, raising hopes for a more durable economic recovery.

The purchasing managers index PMI for South Korean manufacturers, compiled by SP Global, rose to 49.4 in July from 47.8 in June on a seasonally adjusted basis.

The sub50 reading suggested activity continued to contract for the 13th straight month, albeit at a much slower rate.

A subindex for new export orders rose to 50.2, after 16 months below 50, with a rise in demand from key markets across the AsiaPacific region and Europe, particularly for automotive goods and semiconductors, according to the survey.

That brought the decline in overall orders to the narrowest in 12 months, with the subindex sharply up to 48.7 from 45.0, while output rose to 47.2 from 46.5.

Concurrently, firms took this as a signal to prepare for a gradual improvement in demand by taking on additional staff and raising purchasing activity in July, said economist Usamah Bhatti at SP Global Market Intelligence.

Employment increased by the more in 17 months and the quantity of purchases rose for the first time in 12 months, while stocks of finished goods posted the sharpest drop in 18 months, corresponding subindexes showed.

Business conditions improved on the inflation front as well, with input prices falling for the first time since June 2020,…