SEOUL (Reuters – South Korea’s industrial activity accelerated in April. However, cost pressures from the Ukraine crisis as well as China’s restrictive lockdown measures continue to limit manufacturers’ ability to make profit, a survey by private sector showed Monday.

The S&P Global (NYSE:) purchasing managers’ index (PMI) rose to 52.1 in April from 51.2 in March, standing above the 50-mark threshold for the 19th straight month that indicates expansion in activity.

After shrinking in March’s output, the output has returned to expansion. New orders increased at a quicker pace but export orders continued to decline.

With high inflationary pressures increasing, many manufacturers built input stocks and passed higher prices onto their customers.

The survey has been conducted over 18 years. In its history, output prices have increased at an incredible rate while input prices have risen at the fastest rate for five months. The most significant increase in purchases was also recorded.

“Price and supply pressures were exacerbated by the ongoing war in Ukraine and the re-imposition of strict COVID-19 restrictions across China, both of which stifled export orders partly due to port congestion and a lack of available containers,” said Usamah Bhatti, economist at S&P Global.

In order to prevent future disruptions or higher costs, the manufacturers increased and stored additional raw materials and semifinished goods.

Although manufacturing companies were positive about next year’s production, their optimism fell to its lowest level since December 2021.