SEOUL, June 3 Reuters South Korea39;s factory activity expanded in May at the fastest pace in two years on stronger growth in output and orders thanks to broadening global demand, a privatesector survey showed on Monday.

The purchasing managers index PMI for manufacturers in Asia39;s fourthlargest economy, compiled by SP Global, rose to 51.6 in May, from 49.4 in April, on a seasonally adjusted basis.

It was the highest reading since May 2022, and comes after two consecutive months below the 50mark separating expansion from contraction.

Output jumped at the quickest rate since July 2021, while new orders increased by the most since February 2022 thanks to new product launches, stronger export sales and greater domestic client appetite, according to the survey.

New export orders rose for a fifth straight month, as manufacturers recorded sales growth across various markets, from Europe to North and South America, as well as Asian countries like China, Japan and Vietnam.

South Korea39;s exports have been growing since October and provided the biggest boost to the tradereliant economy39;s first quarter growth, which was the fastest in more than two years.

South Korea39;s manufacturing sector appears to have caught a second wind, Joe Hayes, principal economist at SP Global Market Intelligence, said.

Qualitative evidence from the survey also paints a promising forwardlooking picture, with panelists commenting on imminent new product launches providing them with a…