SEOUL, March 2 (Reuters) - South Korea's factory activityexpanded for a second straight month in February as growth inoutput and new orders was sustained, a private manufacturingsurvey showed on Friday.The Nikkei/Markit purchasing managers' index (PMI) onoperating conditions for the manufacturing sector was 50.3 forFebruary, compared with January's 50.7.The 50-point level separates expansion from contraction on amonthly basis.February marked the first time since July 2016 thatindustrial output and new orders expanded for two consecutivemonths. IHS Markit said panelists reported that domestic as wellas overseas clients in February showed more demand.
Manufacturers, expecting growth could be maintained, hiredmore staff for the first time in six months.The hiring was at the "sharpest extent in 18 months,signaling confidence that demand is strong enough to warrantincreased production capacity," said Joe Hayes, an economist atIHS Markit.In February, manufacturers faced higher input costs due toincreased labour and raw material costs, which meant tighterprofit margins.Hayes said that "selling price inflation eased, while inputprices increased sharply," causing firms to boost input buyingduring February with expectations that the upward trend in rawmaterial prices would continue. (Reporting by Dahee Kim; Editing by Richard Borsuk)
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