Korea: Industrial output surges in November after falling twice
December 30, 2016
In November, industrial production jumped 4.8% from the same month of the previous year. The result contrasted the drops in both September (-1.9% year-on-year) and October (-1.3% yoy) and overshot the 3.3% increase the markets had expected. Due to November’s increase, the trend reversed the downward trajectory in place since August. Annual average growth in industrial production rose from 0.1% in October to 0.5% in November.
The all-important manufacturing output sub-index was the key driver behind November’s jump. Manufacturing climbed to a 5.0% annual expansion, after decreasing 1.3% in October. Meanwhile, output in the service sector rose 2.5% in November (October: +2.2% year-on-year) and construction activity increased substantially for a second consecutive month (November: +25.9% yoy; October: +17.8% yoy).
A month-on-month comparison was also encouraging. Korea’s factory output growth, when adjusted for seasonality, increased 3.4% in November, which contrasted a 1.3% drop in October.
Author: Ricardo Aceves, Senior Economist