Korea: Industrial production contracts slightly in November
Industrial production, which includes output from the mining, manufacturing, and electricity and gas sectors, fell 0.3% year-on-year in November, contrasting October’s revised 2.1% drop (previously reported: -2.5% year-on-year). This was mainly because output in the manufacturing sector—which accounts for the majority of industrial production—contracted at a softer pace in November. Moreover, the average annual variation in industrial production was minus 1.0% in November, matching October’s outturn.
In month-on-month and seasonally-adjusted terms, industrial production fell 0.5% in November, weaker than the 1.6% decrease in October (previously reported: -1.7% month-on-month seasonally-adjusted). Meanwhile, the average factory capacity utilization rate slipped to 71.8% in November from 73.3% in the prior month.
Separately, the services sector grew 2.5% year-on-year in November, up from October’s 0.8% expansion, due to a weaker fall in output in the wholesale and retail trade sector, while output expanded in the finance and insurance sector.
Looking ahead, a supportive fiscal stance, an expected recovery in global demand for tech and a bustling 5G network industry should prove supportive this year.