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Australia Holds Modest Factory Growth as South Korea Returns to Expansion in December PMIs

Rebounding export demand contrasts with Australia’s intensifying supply-side cost pressures.

A Hanwha Aerospace engineer works at a factory in Changwon, South Korea, March 16, 2023.   REUTERS/Kim Hong-Ji
A steel worker walks through an electric-arc furnace at Hascelik Melt Factory near Bilecik, Turkey, October 3, 2025. REUTERS/Umit Bektas
A man works at a production base of China Construction Steel Structure Corp Ltd (CSCEC Steel) in Meishan, Sichuan province, China September 3, 2019.  REUTERS/Stringer
Employees work at a steel processing production line of a factory in Mandi Gobindgarh, in the northern state of Punjab, India, August 14, 2025. REUTERS/Bhawika Chhabra

Overview

  • Australia’s S&P Global manufacturing PMI held at 51.6 in December, indicating continued but modest expansion.
  • Australian manufacturers increased hiring at the fastest pace in nine months as workloads rose.
  • Delivery times in Australia lengthened at the sharpest rate in over a year, contributing to faster input inflation and higher output prices.
  • South Korea’s PMI edged up to 50.1, snapping two months of contraction on stronger export orders and new product launches.
  • South Korean new orders rose and business optimism hit its highest since May 2022, even as output fell and input costs jumped to the fastest pace since July 2022.