FX.co ★ South Korea Manufacturing Growth Slows to 8-Month Low

The S&P Global South Korea Manufacturing PMI eased to 51.3 in October 2026 from 53.9 in September, signaling a continued but more moderate improvement in operating conditions and marking the slowest pace of expansion since February. Output growth weakened to its softest rate so far this year as the rise in new orders lost momentum, with firms reporting that material shortages and elevated costs were weighing on activity. Growth in new export orders also cooled, slipping to its weakest point in the current four‑month expansionary run, while the accumulation of backlogs rose at the slowest pace in seven months.

At the same time, manufacturers reduced employment for the first time in four months and cut back on purchasing activity. Pre‑production inventories were run down at the sharpest rate since April 2020. On the price front, input costs climbed markedly, driven by higher raw material prices, whereas output charge inflation eased to an 11‑month low, suggesting some margin pressure. Despite these headwinds, business sentiment remained firmly positive, underpinned by planned product launches and ongoing strength in semiconductor demand.