SEOUL — South Korea's factory activity grew in September at its strongest pace in four months, driven by a surge in export demand. Export orders reached their fastest growth rate in 15 years, primarily propelled by the semiconductor and automotive sectors.
The Purchasing Managers Index, published by S&P Global, registered 53.9 in September, up from 52.3 in August and the highest level since May. The index remained above the 50-point threshold that separates expansion from contraction for a tenth consecutive month.
Usamah Bhatti, an economist at S&P Global Market Intelligence, said new orders and production growth reached their highest points in approximately five and one-half years. Bhatti linked these expansions to strength in the semiconductor and automotive industries.
Factory output rose at its sharpest rate since March 2021. New orders increased at their fastest pace since February 2021, reflecting robust demand. New export orders experienced their largest jump since March 2011, concentrated in key markets across Europe and Asia.
Manufacturers expressed improved optimism for the year ahead, with sentiment reaching an eight-month high.
