South Korea factory activity quickens on surge in export demand, PMI shows

South Korea's factory activity accelerated in July, driven by a surge in export demand, according to a survey released on Monday by S&P Global. The Purchasing Managers' Index (PMI) rose to 53.1 from 52.1 in June, remaining above the 50 threshold that signifies expansion for the eighth consecutive month. Output and new orders grew more rapidly, with new export orders increasing for the first time in three months and at the fastest pace since April 2021, the survey revealed.

"Both production volumes and new orders rose again, with particular strength seen in the semiconductor and automotive sectors," commented Usamah Bhatti, an economist at S&P Global Market Intelligence. Despite a slowdown in construction investment, South Korea's factory output outperformed expectations in the second quarter, helping the Asia's fourth-largest economy expand faster than anticipated.