Korea: Industrial production appears downbeat in November
December 28, 2018
Industrial production in the mining, manufacturing, and gas and electricity sectors rose 0.1% in November compared to the same month a year earlier, down from the revised 10.9% jump in October (previously reported: +10.7% year-on-year). Meanwhile, the less-volatile average annual change in industrial production ticked up to -0.3% in November from -0.4% in October.
Output in the manufacturing sector—which accounts for most industrial production in Korea—rose 0.1% in November, down from the 11.2% rise in October. This was due to greater production destined for producer inventory stocks, whereas output destined for domestic and foreign customers decreased. The average factory capacity utilization rate fell to 72.7% from 73.8% in October.
A month-on-month comparison adjusted for seasonality shows that industrial production fell 1.7% in November, contrasting the 1.3% increase in October.
Author: Edward Gardner, Economist