Korea: Industrial production jumps in January aided by Lunar Year effects
February 28, 2013
In January, industrial production jumped 7.3% over the same month last year, which contrasted the 0.5% drop recorded in December. The reading exceeded market expectations, which had industrial production expanding a softer 5.0%. The stronger-than-expected figure was partially due to extra working days, as the Lunar New Year holidays fell in February this year, while they occurred in January last year.
Compared to the previous month, however, industrial production fell a seasonally adjusted 1.5%, which contrasted the 1.6% increase recorded in December.
The Bank of Korea expects the economy to expand 2.8% this year. For 2014, the Bank expects the economy to grow 3.8%. FocusEconomics Consensus Forecast panellists see the economy growing 3.1% in 2013, which is unchanged from last month's forecast. For 2014, the panel sees the economy growing 4.0%.