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.
Author: Ricardo Aceves, Senior Economist