SEOUL, Jan 2 : South Korea’s manufacturing facility exercise expanded in December, after two months of contraction, on a rebound in export demand, a private-sector survey confirmed on Friday, with producers’ optimism surging to a 3-1/2-year excessive.
The buying managers index (PMI) for producers in Asia’s fourth-largest financial system, printed by S&P Global, stood at 50.1 in December, simply above the 50-mark separating enlargement from contraction, after two consecutive months at 49.4.
“According to manufacturers, new product launches and improved external demand drove the improvement in sales,” mentioned Usamah Bhatti, economist at S&P Global Market Intelligence. “Exports were a notable point of strength.”
The trade-reliant financial system grew within the third quarter on the strongest tempo in almost 4 years, pushed by sturdy exports and a rebound in client spending.
New orders elevated in December for the primary time in three months and marked the strongest achieve since November 2024, with export orders additionally rebounding, sub-indexes confirmed.
Output nonetheless prolonged losses for the third consecutive month, although the tempo of decline was softer than the earlier month.
Other near-term indicators additionally prompt bettering demand. Input purchases rose by essentially the most since August 2024, whereas shares of completed items had been depleted by essentially the most since May 2025.
Optimism for the yr forward grew to the best stage since May 2022 on hopes of enterprise enlargement and new product launches, in accordance with the survey, with notable emphasis on the car and semiconductor sectors.
On the inflation entrance, enter costs rose at the sharpest price since July 2022 on foreign money weak point. That led output inflation to rebound to a nine-month excessive, following a dip within the earlier month.
(Reporting by Jihoon Lee; Editing by Sam Holmes)