South Korea factory activity growth slows to 8-month low in October

South Korea's factory activity expanded in October at the slowest pace in eight months, as output and new orders weakened, a survey by S&P Global showed on Monday.

The purchasing managers index stood at 51.3 in October, down from 53.9 in September and the lowest reading since February. The index stayed above the 50 mark that separates expansion from contraction for an 11th consecutive month.

Output growth was the slowest in 10 months and the rise in new orders was the least in four months, with some firms reporting softer demand for automobiles. International sales were supported by demand from the Asia-Pacific region, while US demand was relatively subdued.

Usamah Bhatti, an economist at S&P Global Market Intelligence, said the October data showed sharp slowdowns in output and new order growth, with production rising at its weakest pace in the year so far. Firms frequently cited slowing demand, raw material shortages and high costs as drags on performance, he said.

The survey covers Asia's fourth-largest economy, which grew 1.0% in the third quarter, beating market expectations, as a global boom in AI chips lifted exports and investment.