RTT News reported that South Korea's manufacturing sector contracted in June 2012 for the first time in five months.

The Purchasing Managers' Index for manufacturing fell to 49.4 in June 2012 from 51 in the previous month. The composite indicator designed to provide a single figure snap shot of the health of the manufacturing sector suggests contraction.

Mr Ronald Man, economist at HSBC in Asia, urged policymakers to support domestic activity to keep Korea on track for a gradual recovery in 2012.

The report revealed that weaker domestic and international demand reportedly contributed to a lower output. Ending a four month period of expansion, manufacturers showed a contraction in order book volumes.

Further, inventories of purchases and finished goods were intentionally reduced by manufacturers in order to keep costs of stock management down.

Source - RTT News

(www.steelguru.com)