SEOUL, April 1 Reuters South Korea39;s manufacturing activity weakened in March as slowing domestic demand offset robust overseas sales, a privatesector survey showed on Monday.

The purchasing managers index PMI for manufacturers in Asia39;s fourthlargest economy, compiled by SP Global, stood at 49.8 in March on a seasonally adjusted basis, down from 50.7 in February.

The fall below the 50mark, which separates expansion from contraction, was the first in three months, with subindexes for output and new orders slipping to 49.8 and 49.9, respectively.

March PMI data signalled that South Korea39;s manufacturing sector saw a renewed deterioration in operating conditions. Both output and new order volumes declined, as firms mentioned that weak demand and a muted domestic economy held back production and sales, said Usamah Bhatti, economist at SP Global Market Intelligence.

One bright light, however, was that export demand rose for the third month in a row and at a stronger rate.

The survey showed export orders grew in Southeast Asia, North America and Japan. The findings align with official data on South Korea39;s overall exports, which have risen since October thanks to chipled demand.

However, domestic demand has been weakening due to interest rates staying at elevated levels for a prolonged period, raising some concerns about the pace of economic recovery.

Manufacturers39; stocks of finished goods and input purchases fell by the sharpest rate since December 2021…