Korea Industry July 2017


Korea: Industrial production fails to gain traction in July

August 31, 2017

Industrial output growth recorded a meager 0.1% expansion in July over the same month last year. The reading contrasted June’s revised 0.5% decrease (previously reported: -0.3% year-on-year). Annual average growth in industrial production eased from 1.9% in June to 1.8% in July.

The weak result largely reflected a lackluster performance in manufacturing output, which declined 0.1% in July (June: -0.7% yoy), despite strong performances in the semiconductor and automobile sectors. Higher output in these industries, however, drove the average operation ratio from 71.2% in June to 73.4% in July, the best reading since January.

The month-on-month comparison gives a clearer picture of the underlying health of the sector. In July, factory output was up 1.9% over the previous month, which contrasted the 0.5% decrease seen in June. July’s figure was the highest in six months and was driven by new car production lines and the release of Samsung’s latest smartphone .

FocusEconomics Consensus Forecast panelists expect industrial production to expand 2.9% in 2017, which is down 0.1 percentage points from last month’s forecast. For 2018, panelists expect industrial output to increase 2.1%.

Author:, Economist

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Korea Industry Chart

Korea Industry July 2017

Note: Year-on-year and annual average var. of industrial production index in %.
Source: Korea National Statistics Office (KOSTAT).

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