Korea: Industrial production picks up in October
November 30, 2010
In October, industrial production rose 13.5% over the same month last year, accelerating strongly from the 3.9% increase recorded in September, but nonetheless undershooting market expectations of a 15.4% rise. The reading was strongly influenced by a positive base effect, as industrial production increased just 0.2% in October last year, as a consequence of the 3-days Chuseok harvest festival, during which factories shut down.This year, the festival was celebrated in September. The improvement over the previous month was broad-based, as the three main industrial sectors improved. Manufacturing, which accounts for the bulk of industrial output, increased 13.6% annually (September: +4.0% yoy), the mining sector dropped 5.7% (September: -19.8% yoy) and electricity and gas supply grew 9.3% (September: +3.0% yoy). However, a month-on-month comparison does not corroborate the improvement seen in the annual figures. Industrial production dropped 4.16% over the previous month on a seasonally adjusted basis, which was down from the 0.35% fall recorded in September and marked the third consecutive monthly contraction.
Author: Armando Ciccarelli, Head of Data Solutions