Korea: Industrial production falls at the fastest pace in nearly a decade in September
Industrial production in the mining, manufacturing, and gas and electricity sectors plummeted 8.4% in September compared to the same month last year, contrasting the 2.5% increase recorded for August. This represents the largest monthly decline in industrial output in nine-and-a-half years. The average annual change in industrial production deteriorated to -1.7% in September from -0.2% in August.
In terms of the manufacturing sector—which accounts for most of industrial production—output fell 8.9% in September, contrasting the 2.0% increase in August. This was due to a sharp decline in production destined for the domestic market, coupled with another fall—albeit more modest—in output geared to foreign markets. Meanwhile, the average factory capacity utilization rate decreased in September compared to August, while inventory levels increased.
A month-on-month comparison adjusted for seasonality shows that industrial production fell 2.5% in September, contrasting the 1.3% growth recorded for August.