Korea: Industrial production drops to nine-month low in October
November 28, 2014
In October, industrial production decreased 3.2% over the same month last year, which contrasted the 1.9% expansion recorded in September and marked the largest drop in nine months. October’s reading undershot the 0.3% contraction that the markets had expected. According to the Korea National Statistics Office, the contraction was mainly due to a strong decline in manufacturing production, which swung from a 2.0% expansion in September to a 3.4% contraction in October. Construction also dropped even faster than in the previous month. The service industry was the only one to post positive growth, although it did also decelerate from September’s reading.
A month-on-month comparison confirms the deterioration suggested by annual data. Industrial production declined a seasonally-adjusted 1.6% in October, which was notably below the flat reading tallied in September. As a result of worse performance in industrial production, annual average growth in industrial output fell from 1.0% in September to 0.4% in October.
Author: Cecilia Simkievich, Economist