Korea: Industrial production growth hits a seven-month high in August
Industrial production in the mining, manufacturing, and gas and electricity sectors increased 2.5% in August compared to the same month last year, up from the revised 1.0% rise in July (previously reported: +0.9% year-on-year). This represents the fastest expansion in seven months. Despite the strong result in August, the average annual change in industrial production remained unchanged from July’s 0.2% contraction.
In terms of the manufacturing sector, which accounts for the majority of industrial production, output rose 2.0% in August, up from 0.9% in July. This was due to growth in production destined for both domestic and external markets. Inventory levels of manufacturers also increased in August. The average factor capacity utilization rate rose to 75.7% from 73.2% in July.
A month-on-month comparison adjusted for seasonality shows that industrial production grew 1.4% in August, up from 0.5% in July.