SEOUL, Jan 2 Reuters South Korea39;s factory activity contracted in December, a business survey showed on Tuesday, due to falling new orders, which were squeezed by weaker Chinese demand.

The purchasing managers index PMI for South Korean manufacturers, compiled by SP Global, was at 49.9 in December, slightly below 50.0 in November. The 50.0 point threshold also separates growth from contraction.

New export orders declined for the fifth month in a row in December, as anecdotal evidence highlighted weak Chinese demand, SP Global said in a statement.

The outlook for 2024 is positive but fairly muted, with the Future Output Index still running below its longrun trend, said Trevor Balchin, Economics Director at SP Global Market Intelligence. But with purchases of inputs rising slightly and employment growing at a faster rate in December, firms are apparently gearing up for higher workloads in the coming months.

Reporting by Cynthia Kim. Editing by Sam Holmes

Source Reuters