South Korea Factory Growth Hits Over Five Year High
The S&P Global purchasing managers index for South Korea rose to 54.8 in May as manufacturers increased output and stock building amid Middle East supply concerns. While domestic orders reached a five-year peak, new export orders declined for the first time in six months due to muted demand.
South Korea factory activity rose to 54.8 in May, marking the fastest expansion for the manufacturing sector since March 2021. This reading climbed from 53.6 in April as manufacturers increased production and stockpiled goods. The data suggests industrial resilience despite cooling demand from major trade partners.
### Supply Chain Fears Drive Stockpiling Manufacturing output and new orders grew at their strongest rates in five years during May. Usamah Bhatti, economist at S&P Global Market Intelligence, said manufacturers are building inventories to mitigate risks from the Middle East conflict. These efforts come as the war continues to disrupt supply conditions and push prices higher.
