Korea: Industrial production rebounds in September
Industrial production increased 0.4% year-on-year in September, contrasting August’s revised 3.3% decline (previously: -2.9% year-on-year). Moreover, average annual variation in industrial production ticked up to 0.2% in September, contrasting August’s 0.3% decrease.
Output in the manufacturing sector—which accounts for the majority of industrial production—expanded marginally in September after contracting in August. The services sector also grew in the month, albeit at a softer pace than in August.
In month-on-month and seasonally-adjusted terms, industrial production rose 2.0% in September, contrasting a decrease of 1.8% in August. Meanwhile, the average factory capacity utilization rate increased to 75.6 in September from 73.4 in the prior month.
Going forward, a subdued global growth outlook and ongoing U.S.-China trade tensions will likely continue to suppress industrial production. Ongoing fiscal and monetary stimulus measures, however, ought to buttress the industrial sector somewhat.