TOKYO -- South Korea's manufacturing sector in February continued to deteriorate to the lowest level since June 2015, according to a survey.
The Nikkei South Korea Manufacturing Purchasing Managers' Index, or PMI, fell to a 44-months low of 47.2 in February, from 48.3 in January. A reading above 50 indicates an expansion while a reading below 50 points to a contraction.
New orders from both domestic and overseas markets declined, leading to sharp reductions of output and staffing levels.
“For South Korea’s economy to sustain its relatively robust growth path, the domestic economy will need to pick up the slack from overseas markets," said Joe Hayes, Economist at IHS Markit, which compiles the survey.
"With total order book volumes falling at the strongest rate in almost four years, this seems unlikely," Hayes added.
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