UPDATE 1-S.Korea manufacturing growth slows in Oct - survey

* Manufacturing sector up in Oct, but pace slows: survey

* Investors doubt stimulus-led recovery will be sustained

* President Lee: more time needed for economic recovery

* Policy interest rate seen steady in 2009 (Updates with president, details)

SEOUL, Nov 2 - South Korea's manufacturing sector expanded for an eighth consecutive month in October but the pace slowed, a private survey showed on Monday, adding to investors' doubts about the sustainability of a global recovery.

The HSBC/Markit South Korea manufacturing purchasing managers' index (PMI) fell to a seasonally adjusted 52.5 in October from 52.7 in September. A reading above 50 means the sector's business activity expanded during the month.

A sub-index on new orders received by South Korean manufacturing companies also stood above 50 at a seasonally adjusted 54.6 in October, falling from 54.9 in September, Makit Economics Ltd said in a report.

The findings came a day after government data showed exports by Asia's fourth-largest economy fell less than forecast by analysts from a year earlier on resilient demand from China but that sales to the United States fell steeply.

The weak U.S.-bound shipments underscored lingering scepticism among investors that the stimulus spending-led recovery in global trade seen recently would be sustained. [ID:nSEO73164]

President Lee Myung-bak also said in a prepared speech at the parliament it would take a longer time until the domestic economy regains momentum and fully emerges from the crisis. [ID:nSEV002888]

Analysts said doubts about the health of the global economy, benign domestic consumer inflation and a depressed domestic job market would persuade the Bank of Korea to hold interest rates steady at a record low for the rest of this year.

The Bank of Korea has kept the 7-day repurchase agreement rate <KROCRT=ECI> unchanged at 2.0 percent for eight consecutive months and next reviews the rate on Nov. 12.