Korea: Industrial production expands in April for the first time since January

Industrial production in the mining, manufacturing, and gas and electricity sectors increased 0.9% in April compared to the same month last year, a contrast from the revised 4.0% drop in March (previously reported: -4.3% year-on-year). Amid weak readings in recent months—the previous month of growth was January—annual average growth in industrial production slowed to a standstill in April from the 0.2% expansion in March.

Output in the manufacturing sector swung to a 0.7% expansion in April from a 4.4% contraction in March, as manufacturers built up their inventory levels. Meanwhile, the average factory capacity utilization rate rose to 72.5% in April from 70.3% in March.

A month-on-month comparison adjusted for seasonality shows that industrial production rose 3.4% in April, contrasting the 2.2% fall in March.

Korea Industrial Production Forecast

FocusEconomics Consensus Forecast panelists expect industrial production to expand 1.1% in 2018, which is down 0.4 percentage points from last month’s forecast. For 2019, panelists expect industrial output to increase 2.5%.