Korea: Industrial production rebounds in February
March 31, 2012
REAL SECTOR | Industrial production rebounds in February In February, industrial production spiked 14.4% over the same month last year, which marked the sharpest increase since August 2010. The reading contrasted the 2.1% contraction recorded in January and exceeded market expectations, which had industrial production expanding 10.5%. The increase was broad-based, as all sub-components of the index rebounded from the contraction experienced in the previous month. Compared to the previous month, however, industrial production expanded a seasonally adjusted 0.8%, well below the revised 3.2% expansion seen in January (previously reported: +3.3% month-on-month). Nevertheless, the monthly increase overshot market expectations of a 0.5% expansion. Annual average growth accelerated to a 6.1% expansion in February from 5.6% in January, which had marked the lowest level since January 2010. On 15 April, The Bank of Korea cut its 2012 GDP forecast from 3.7% to 3.5% but maintained its 4.2% growth projection for 2013.