FX.co ★ South Korea Manufacturing Growth Accelerates in September

South Korea’s manufacturing sector strengthened in September 2026, with the S&P Global Manufacturing PMI rising to 53.9 from 52.3 in August, the highest reading since May. Production and new orders grew at their fastest pace since early 2021, driven in particular by robust demand in the semiconductor and automotive industries.

Export orders increased at the quickest rate since March 2011, supported by stronger sales to Europe and other Asian markets. Backlogs of work rose for the ninth consecutive month and at the fastest pace since May 2022, prompting manufacturers to modestly increase employment. Purchasing activity also picked up as firms prepared for anticipated stronger sales, even as input inventories declined for a second straight month.

On the cost side, input price inflation slowed to its weakest rate since October 2025, and output price inflation also eased. Business confidence improved to its highest level since January 2026, underpinned by stronger sales expectations and moderating price pressures, with firms anticipating further growth in demand ahead.