South Korea factory activity extended its growth streak into August, marking a ninth consecutive month of expansion as exporters benefited from firmer overseas demand, according to a monthly survey.
South Korea factory activity and PMI trends
The manufacturing purchasing managers index, compiled by S&P Global, registered 52.3 in August. That was down from 53.1 in July, yet it remained above the 50 threshold that separates growth from contraction for a ninth month in a row.
Manufacturers continued to report resilient demand. A sub-index tracking new orders came in at 53.5 in August compared with 54.8 in July, the survey showed.
Export demand strengthens
David Owen, an economist at S&P Global Market Intelligence, said that while overall new order growth eased in August, export demand rose at the fastest pace since November 2020. He called the pickup an encouraging sign that firms are still benefiting from the current AI and semiconductor supercycle.
Broader economic context
Asia’s fourth-largest economy grew faster than expected in the second quarter, supported by a boom in semiconductor exports that offset weaker construction investment, according to recent official data.
Reporting by Cynthia Kim. Editing by Sam Holmes.