Korea: Industrial production increases in July
August 31, 2018
Industrial production in the mining, manufacturing, and gas and electricity sectors increased 0.9% in July compared to the same month last year, contrasting the 0.4% fall in June. The average annual change in industrial production remained unchanged from June’s 0.2% contraction in July.
In terms of the manufacturing sector, which represents a large chunk of industrial production, output rose 0.8% in July, contrasting the 0.7% decrease in June. This came amid growth in manufacturers’ inventory levels and increased production destined for the external market. Weighing on the manufacturing sector, however, was a decrease in output for the domestic market. The average factor capacity utilization rate rose to 74.3% from 73.4% in June.
A month-on-month comparison adjusted for seasonality shows that industrial production grew 0.4% in July. This contrasts the 0.7% contraction in June.
Korea Industrial Production Forecast
FocusEconomics Consensus Forecast panelists expect industrial production to expand 1.2% in 2018, which is down 0.3 percentage points from last month’s forecast. For 2019, panelists expect industrial output to increase 2.3%.
Author: Edward Gardner, Economist