Korea: Industrial production rebounds in February
March 31, 2016
In February, industrial production expanded 2.4% over the same month last year, which contrasted both the 2.2% decrease recorded in January and the 0.2% contraction the markets had expected.
The monthly rebound was mainly the result of a low base of comparison (bas effect), as industrial production had contracted 5.1% in February 2014. Looking at the details, manufacturing output bounced back in February and increased 2.3% (January: -2.3% year-on-year). Meanwhile, construction continued to expand.
On a month-on-month basis, industrial production jumped 3.3% in February in seasonally-adjusted terms, which contrasted the 2.1% drop tallied in January. Due to the strong increase in February, the annual average variation in industrial output rose from minus 0.9% in January to minus 0.3% in February.
Author: Ricardo Aceves, Senior Economist