FX.co ★ South Korea Manufacturing Growth Eases in August

The S&P Global South Korea Manufacturing PMI edged down to 52.3 in August 2026 from 53.1 in July, indicating a continued, albeit slightly slower, expansion in the manufacturing sector that remains above its long-run average. Output and new orders rose for the eighth and ninth consecutive months, respectively, though the rate of growth moderated.

Export orders increased at their fastest pace since November 2020, driven by stronger demand from key trading partners in Asia, Europe, and North America. Employment grew for the fifth time in six months, even as material shortages and ongoing supply chain disruptions continued to restrict production capacity and contributed to rising backlogs of work.

On the cost front, input price inflation eased for the fourth consecutive month, reaching its lowest rate since November 2025, while output charge inflation slowed to a seven‑month low. Business sentiment strengthened to a three‑month high, with firms highlighting robust sales expectations and new opportunities linked to emerging technology products and services.