South Korea Manufacturing Growth Strongest in Over 5 Years

2026-06-01 00:43 By Joshua Ferrer 1 min. read

The S&P Global South Korea Manufacturing PMI rose to 54.8 in May 2026 from 53.6 in April, marking the strongest expansion since March 2021.

Output and new orders grew at their fastest pace in around five years, supported by stronger domestic demand and inventory-building efforts as firms sought to guard against rising costs linked to the Middle East war.

Production growth also hit a five-year high, while purchasing activity increased at the quickest rate since July 2021.

Stronger demand encouraged manufacturers to expand payrolls, with employment rising at the fastest pace since March 2013, while backlogs increased for a fifth straight month.

However, delivery times lengthened further amid raw material shortages and disruptions.

Input cost inflation remained near April’s record high, driven by higher raw material, oil prices and a weaker currency, while selling-price inflation stayed among the highest in the survey’s history.

Lastly, business confidence improved to a three-month high.



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South Korea Manufacturing Growth Strongest in Over 5 Years
The S&P Global South Korea Manufacturing PMI rose to 54.8 in May 2026 from 53.6 in April, marking the strongest expansion since March 2021. Output and new orders grew at their fastest pace in around five years, supported by stronger domestic demand and inventory-building efforts as firms sought to guard against rising costs linked to the Middle East war. Production growth also hit a five-year high, while purchasing activity increased at the quickest rate since July 2021. Stronger demand encouraged manufacturers to expand payrolls, with employment rising at the fastest pace since March 2013, while backlogs increased for a fifth straight month. However, delivery times lengthened further amid raw material shortages and disruptions. Input cost inflation remained near April’s record high, driven by higher raw material, oil prices and a weaker currency, while selling-price inflation stayed among the highest in the survey’s history. Lastly, business confidence improved to a three-month high.
2026-06-01
South Korea Manufacturing Growth Strongest in 4 Years
The S&P Global South Korea Manufacturing PMI rose to 53.6 in April 2026 from 52.6 in March, marking the strongest expansion since February 2022. Output and new orders accelerated, driven by new product launches and client stockpiling. Export demand also edged higher, supported in part by easing US tariff-related disruptions. Production grew at the fastest pace in 20 months, while firms continued to increase purchasing activity to secure inputs. Employment also continued to rise, while backlogs increased further. However, material shortages led to further declines in input inventories. On prices, input costs and output charges surged at record rates since April 2004, driven by higher raw material, oil, and fuel prices and supply disruptions linked to the Middle East conflict. Supplier delivery times worsened to the greatest extent since June 2022, while finished goods inventories fell sharply. Looking ahead, business confidence dropped to a five-month low.
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South Korea Manufacturing PMI Highest Since 2022
The S&P Global South Korea Manufacturing PMI increased to 52.6 in March 2026 from 51.1 in February. It marked the strongest growth in factory activity since February 2022, as both output and new orders rose, with the former increasing at the steepest rate since August 2024 amid improved domestic demand. Meanwhile, employment rose for the first time in three months, with the rate of job creation hitting a six-month high amid reports that companies looked to take on full-time staff. Consequently, firms recorded a third consecutive monthly accumulation in backlogs of work, though the latest increase was only fractional overall. On prices, input cost inflation accelerated to its fastest pace since June 2022. As a result, output cost inflation also accelerated to the greatest degree since July 2022. Looking ahead, business sentiment deteriorated to a four-month low amid rising geopolitical tensions.
2026-04-01