Korea: Industrial production falls in June, rounds out a weak second quarter
July 31, 2019
Industrial production fell 2.9% in annual terms in June, contrasting the revised 0.2% increase registered in May (previously reported: -0.2% year-on-year). The less-volatile average annual growth in industrial production also weakened in the month, edging down to 0.4% from 0.8% in May.
Output in the manufacturing sector—which accounts for the majority of industrial production—declined sharply in June after marginal growth in May, causing a contraction in the second quarter as a whole. June’s drop was driven by falling shipments, which came on the back of sharper declines in both domestic and export demand, and slower inventory buildup. Meanwhile, the average factory capacity utilization rate was stable at May’s 71.9% in June.
In month-on-month seasonally adjusted terms, industrial production recovered 0.2% in June from the downwardly revised 1.3% decline in May (previously reported: -1.7% month-on-month).
Author: Lindsey Ice, Economist