South Korea Manufacturing Growth Accelerates in September

The S&P Global South Korea Manufacturing PMI rose to 53.9 in September 2026 from 52.3 in August, marking the strongest expansion since May. Output and new orders increased at their fastest rates since early 2021, with demand boosted particularly by the semiconductor and autos sectors. Export orders rose at the fastest pace since March 2011, supported by stronger sales to Europe and other Asian markets. Backlogs increased for a ninth consecutive month and at the fastest pace since May 2022, prompting a modest rise in employment. Manufacturers also increased purchasing activity as firms prepared for stronger sales ahead, although stocks of inputs fell for a second month. Meanwhile, input cost inflation eased to its slowest pace since October 2025, while output price inflation also moderated. Business confidence improved to its highest level since January 2026, supported by stronger sales expectations and easing price pressures, amid expectations for further sales growth.

The S&P Global South Korea Manufacturing PMI fell to 52.3 in August 2026 from 53.1 in July, signaling a modest but still above-average expansion in the manufacturing sector. Output and new orders increased for the eighth and ninth consecutive months, respectively, although the pace of growth softened. Export orders rose at the fastest pace since November 2020, supported by stronger demand from major trading partners across Asia, Europe and North America. Employment increased for the fifth time in six months, while material shortages and supply chain disruptions continued to constrain production and push backlogs higher. Meanwhile, input cost inflation eased for a fourth straight month to its slowest pace since November 2025, while output price inflation fell to a seven-month low. Business confidence also improved to a three-month high, with firms citing bullish sales expectations and opportunities arising from new technology products and services.

The S&P Global South Korea Manufacturing PMI rose to 53.1 in July 2026 from 52.1 in June, signaling the third-strongest expansion in the past four years. Output and new orders grew at a faster pace, supported by stronger demand, particularly from the semiconductor and automotive sectors, while export orders increased for the first time in three months and at the fastest rate since April 2021. Employment rose for the fourth time in five months as firms expanded production, while purchasing activity remained solid despite ongoing supplier delays linked to the Middle East conflict. Input buying and pre-production inventories also increased as manufacturers sought to guard against further cost pressures and supply disruptions. Meanwhile, input cost inflation eased to its slowest pace since before the outbreak of the war, allowing firms to moderate increases in selling prices, while business confidence strengthened on expectations of sustained order growth and new product launches.