Korea: Industrial production drops unexpectedly in February
March 29, 2013
In February, industrial production dropped 9.3% over the same month last year, which contrasted the revised 7.6% increase recorded in January (previously reported: 7.3% year-on-year). The reading exceeded market expectations, which had industrial production dropping a softer 5.3%. The weaker-than-expected figure was partially due to fewer working days, as the Lunar New Year holidays fell in February this year, while it occurred in January last year.
Compared to the previous month industrial production fell a seasonally adjusted 0.8%, which, nevertheless, marks an improvement from the 1.2% fall recorded in January.
The Bank of Korea expects the economy to expand 2.8% this year. For 2014, the Bank expects the economy to grow 3.8%. FocusEconomics Consensus Forecast panellists see the economy growing 3.1% in 2013, which is unchanged from last month's forecast. For 2014, the panel sees the economy growing 4.0%.