Korea Industry May 2017


Korea: Industrial output growth slows to seven-month low in May

June 29, 2017

Industrial production growth nearly stagnated with a 0.1% expansion in May from the same month last year, the weakest reading since October 2016. The reading came in below April’s revised 1.8% rise (previously reported: +1.7% year-on-year). In line with this month’s deceleration, annual average growth in industrial production eased from 2.4% in April—the highest reading in over four years—to 2.0% in May

The sharp slowdown was the result of stagnant growth in the crucial manufacturing output sub-index, which suffered from ebbing Chinese demand. Meanwhile, dwindling demand continued to lower pressure in the average factory capacity utilization rate, which dipped again in May.

A month-on-month comparison showed output in the industrial sector expanding 0.2% in seasonally-adjusted terms in May, which contrasted the 2.2% drop recorded last month but missed analysts’ expectations of a 1.5% increase in factory output.

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 May 2017

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

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