Korea: Growth in industrial production eases in January
March 1, 2017
In January, industrial production in Korea rose 1.7% from the same month last year. The result followed the 4.2% expansion observed in December and undershot market expectations of a 2.6% reading. Due to the annual increase, the trend is continues to point upwards. Annual average growth in industrial production increased from 1.0% in December to 1.3% in January.
The all-important manufacturing output sub-index was behind January’s subdued expansion. Growth in manufacturing decelerated from a 4.3% increase to a 2.0% expansion year-on-year in January. Meanwhile, growth in the service sector accelerated to 2.7% in January (December: +1.9% year-on-year), and construction activity recorded a massive 14.4% increase (December: +12.3% yoy).
A month-on-month comparison paints a brighter picture of the industrial sector. Korea’s factory output growth, when adjusted for seasonality, increased 3.3% from the previous month in January. The result contrasted the 0.5% drop recorded in December and marked the highest reading since May 2016.
Author: Luis Lopez Vivas, Economist