Korea Industry July 2016


Korea: Industrial production accelerates in July

August 31, 2016

In July, industrial production accelerated and expanded 1.6% year-on-year, which was up from the 0.8% increase registered in June and overshot expectations of another 0.8% expansion. This result was the third month of increase in industrial output following several months of erratic growth.

Looking at the details, manufacturing output increased 1.7% annually in July, beating the 1.0% expansion recorded in June. Construction sustained another impressive annual increase (July: +21.4% year-on-year; June: +20.3% yoy) and the service industry sub-category showed some loss of momentum (July: +2.7% yoy; June: +5.4% yoy).

A month-on-month comparison corroborated the acceleration suggested by the annual data as industrial production expanded a solid 1.4% in July in seasonally-adjusted terms, which contrasted a 0.4% decrease in June. Due to the strong annual increase, the trend suggests that a gradual recovery remains in place. The annual average growth in industrial output rose from 0.2% in June to 0.6% in July.

Growth in industrial output is gradually stabilizing, following a contraction in 2015. FocusEconomics Consensus Forecast panelists expect industrial production to remain flat in 2016, which is down 0.2 percentage points from last month’s forecast. For 2017, panelists expect industrial output to increase 1.5%.

Author:, Senior Economist

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Korea Industry Chart

Korea Industry July 2016

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

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