Korea: Industrial production decreases in June
July 31, 2018
Industrial production in the mining, manufacturing, and gas and electricity sectors decreased 0.4% in June compared to the same month last year, contrasting the revised 1.2% increase in May (previously reported: 0.9% year-on-year). The average annual change in industrial production slipped to a 0.2% contraction in June (May: -0.1% yoy).
Output in the manufacturing sector decreased 0.7% in June, a contrast from the 1.0% growth recorded in May. This was due to weaker production destined for the domestic market in Korea and coincided with strong growth in producers’ inventory levels. Meanwhile, the average factor capacity utilization rate decreased to 73.5% in June from 74.0% in May.
A month-on-month comparison adjusted for seasonality shows that industrial production was stable in June. This contrasts the 1.6% increase recorded in May.
Author: Edward Gardner, Economist