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.
Author: Jan Lammersen, Economist