The S&P Global South Korea Manufacturing PMI climbed to 53.1 in July 2026 from 52.1 in June, marking the third-strongest expansion in the past four years. Both output and new orders accelerated, driven by stronger demand—particularly from the semiconductor and automotive industries—while export orders rose for the first time in three months and at the fastest pace since April 2021.
Employment increased for the fourth time in five months as firms ramped up production, and purchasing activity remained robust despite persistent supplier delays related to the conflict in the Middle East. Manufacturers also stepped up input buying and built up pre-production inventories to hedge against potential cost increases and further supply chain disruptions.
At the same time, input cost inflation slowed to its weakest rate since before the outbreak of the war, enabling firms to ease the pace of selling price increases. Business confidence improved as well, underpinned by expectations of continued growth in new orders and the launch of new products.
