Korea Industry April 2017


Korea: Growth in industrial production slows in April

May 30, 2017

Industrial production in Korea rose 1.7% in April from the same month last year and registered the lowest reading in three months. The result was significantly below the 5.0% increase market analysts had expected and followed a 3.3% expansion in March (previously reported: +3.0% year-on-year). Despite this being the second consecutive month of decelerating growth, annual average growth in industrial production rose from 2.0% in March to 2.4% in April, the highest reading in over four years.

The slowdown was driven by a smaller increase in the crucial manufacturing output sub-index, with demand in this category moderating for the second consecutive month. The construction and service industries also moderated in April.

A month-on-month comparison paints a bleaker picture of the industrial sector. Korea’s factory output growth plunged 2.2% in seasonally-adjusted terms after March’s 1.2% expansion. This was significantly different from market expectations of a 0.8% increase and represented the sharpest drop since January 2013.

FocusEconomics Consensus Forecast panelists expect industrial production to expand 2.9% in 2017, which is up 0.6 percentage points from last month’s forecast. For 2018, panelists expect industrial output to increase 2.3%.

Author:, Economist

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Korea Industry Chart

Korea Industry April 2017

Note: Year-on-year and annual average var. of industrial production index in %.
Source: Korea National Statistics Office (KOSTAT).

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