Korea: Industrial production finds its feet in December
January 31, 2019
Industrial production in the mining, manufacturing, and gas and electricity sectors rose 1.6% in December compared to the same month a year earlier, up from the revised 1.1% increase in November (previously reported: +0.1%). Meanwhile, the less-volatile average annual change in industrial production showed 0.4% growth in December, contrasting the 0.1% fall in November.
Output in the manufacturing sector—which accounts for most industrial production—rose 2.0% in December, up from the 1.3% increase in November. This was due to greater production destined for producer inventory stocks and both domestic and foreign customers. The average factory capacity utilization rate fell to 72.7% in December from 73.1% in November.
A month-on-month comparison adjusted for seasonality shows that industrial production fell 1.4% in December, less than the 1.6% decrease in November.
Korea Industrial Production Forecast
FocusEconomics Consensus Forecast panelists expect industrial production to expand 2.4% in 2019, which is unchanged from last month’s forecast. For 2020, our panelists expect industrial output to expand 2.4% again.
Author: Edward Gardner, Economist