SEOUL, Oct 2 Reuters South Korea39;s factory activity contracted at the sharpest pace in 15 months in September as overseas demand slowed for the first time in the year, a private survey showed on Wednesday, suggesting a slow road to a fullblown economic recovery.

The purchasing managers index PMI for manufacturers in Asia39;s fourthlargest economy, compiled by SP Global, stood at 48.3 in September on a seasonally adjusted basis, down from 51.9 in August.

The index fell below the 50mark, which separates expansion from contraction, for the first time in five months and registered the lowest reading since June 2023.

Output and new orders shrank in September, after gaining for five straight months, with the steepest slump in 11 months and 15 months, respectively.

While sluggish domestic demand was cited in the survey as a main factor behind the fall in orders, new export business also posted their first fall of the year.

Specifically, export sales to China, Japan, India and the United States weakened, according to the survey.

South Korea39;s manufacturing sector faced a reversal in fortunes during September. The forwardlooking picture also looks clouded in uncertainty, said Usamah Bhatti, economist at SP Global Market Intelligence.

South Korea39;s economy unexpectedly shrank in the second quarter, logging its sharpest contraction since the fourth quarter of 2022, and officials are counting on exports to help shore up growth.

The survey showed backlogs of work, an…