A private sector survey shows that due to improved global demand, South Korea's factory activity in June grew at the fastest pace in 26 months.
The South Korea Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 52.0 in June from 51.6 in May (seasonally adjusted data).
This is the highest reading since April 2022 and has remained above 50 for two consecutive months, the value that separates expansion from contraction.
Joe Hayes, chief economist at S&P Global Market Intelligence, said, “Another strong month of data further confirms the recovery in global industrial activity and trade.”
“Due to South Korea's integration of key intermediate products like batteries and semiconductors in the supply chain, it is seen as a bellwether for exports. South Korea's manufacturing output and orders often foreshadow broader trends.”
New orders grew at the fastest pace since February 2022 with strong internal and external demand, while overseas orders saw the largest increase in five months, the sub-index showed.
The survey noted that markets including Asian countries like China, Vietnam, and Japan, as well as regions such as North America and Europe, are the main contributors to sales growth.
