South Korea Factory Activity Hits Four Year High in April

South Korea factory activity rose to 53.6 in April, marking the strongest expansion for the manufacturing sector since February 2022. The reading climbed from 52.6 in March as semiconductor demand fueled gains in both output and new orders. Rising raw material costs pressured margins, though the war in the Middle East disrupted some supply of raw materials.

### Semiconductor Demand Drives Output Gains Semiconductor demand continued to power both output and new orders, keeping production levels elevated throughout the month. S&P GLOBAL INC economist Usamah Batti said the Middle East conflict contributed to higher demand as firms secured additional orders to build inventory. These buffers were intended to protect against potential supply chain delays and price volatility.