South Korea’s manufacturing sector contracted further in July, with the S&P Global Manufacturing PMI falling to 48 from 48.7 in June, marking the sixth straight month of decline. Output and new orders fell at sharper rates, driven by mounting weakness in domestic demand. As a result, firms scaled back hiring and purchasing activity, while business sentiment turned negative for the first time in three months. Input cost inflation also picked up, with average cost burdens rising at the fastest pace since March. “Both production volumes and new orders fell at a steeper rate than in June,” said Usamah Bhatti, Economist at S&P Global. “Anecdotal evidence points to a weakening domestic economy, compounded by the effects of US tariff policy.”