South Korea's March manufacturing growth hits a four-year high

LootboxPhobia · 2026-04-01T06:54:34+00:00

According to the latest S&P Global Purchasing Managers' Index data, South Korea's manufacturing sector achieved its fastest expansion in over four years in March, with the PMI rising from 51.1 to 52.6. Driven by increases in semiconductors and new orders, production grew rapidly, and domestic demand improved. Despite challenges, overseas demand also rebounded, and the employment rate increased. Although costs rose, businesses remain optimistic about the future.

LootboxPhobia

2026-04-01 06:54:34

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Investing.com – Based on the latest S&P Global Purchasing Managers’ Index data released on Wednesday, South Korea’s manufacturing sector posted its fastest expansion pace in more than four years in March.

The Purchasing Managers’ Index after seasonal adjustment rose from 51.1 in February to 52.6 in March, indicating a modest improvement in factory health. Any reading above 50 signals expansion in the industry.

Fueled by higher semiconductor and new product order inflows, output grew at the fastest pace in 19 months. Manufacturers said improving domestic demand, winning new customers, and launching new products were key factors supporting sales growth.

The total volume of new orders increased for the fourth consecutive month. Despite challenges from the conflict in the Middle East and currency fluctuations, overseas demand still showed a marginal improvement.

Employment returned to growth for the first time in three months, reaching a six-month high, as firms hired full-time workers to meet rising production demand.

Driven by rising oil prices, higher input costs for raw materials, and unfavorable currency movements, input costs surged at the fastest pace since June 2022. In response, manufacturers raised output prices at the fastest rate since July 2022.

Supply chain pressures intensified, with delivery times extending to the greatest extent in 39 months due to disruptions caused by the Middle East war. Businesses increased procurement activities and built up safety stock to guard against future price increases and supply issues.

Intermediate goods inventory edged up for the first time in five months, while finished goods inventory declined, as firms used existing inventory to fulfill orders.

Business confidence in the outlook for the next 12 months remained positive but fell to a four-month low. Optimism was mainly concentrated on expectations for scaling up production of new customer wins and new products.

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