South Korea factory activity grows at slower pace as export demand weakens, PMI shows

SEOUL - South Korea's factory activity expanded in June for the seventh consecutive month, though at a slower pace than the previous month on falling export demand, a survey showed on Wednesday.

• The purchasing managers index (PMI), published by S&P Global, stood at 52.1 in June, down from May's 54.8 - the highest in more than five years.

• Output and new orders grew more slowly, while new export orders fell for the second straight month from the lingering impact of the Middle East conflict, according to the survey.

• "Firms frequently reported that rising raw material prices, alongside difficulties sourcing and receiving inputs due to delays and shortages, weighed on sector performance," said Usamah Bhatti, economist at S&P Global Market Intelligence.

• Business optimism for the year ahead weakened to the lowest since November 2025 on concerns over the health of the domestic economy and the potential for a prolonged period of high raw material prices.

• South Korea's factory output fell for the second straight month in May, missing expectations, data showed on Tuesday. The economy grew in the first quarter at the strongest pace in nearly six years on a boom in chip exports.

(Reporting by Jihoon Lee; Editing by Jacqueline Wong)

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This story was originally published June 30, 2026 at 6:10 PM.