Korea: Industrial production records largest decline since January
September 30, 2014
In August, industrial production decreased 2.8% over the same month last year, which marked the largest decline since January 2014. The figure contrasted both July’s revised 3.9% expansion (previously reported: +3.4% year-on-year) and market expectations of a 2.0% expansion. According to the Korea National Statistics Office, the result was mainly due to a sharp decline in the manufacturing sub-component of the index. Manufacturing output declined 2.7% in August, which contrasted the 4.0% expansion tallied in July.
A month-on-month comparison shows that industrial production decreased a seasonally-adjusted 3.8% in August, which contrasted the 1.5% expansion recorded in July. Annual average growth in industrial output fell from 1.0% in July to 0.5% in August.
Author: Cecilia Simkievich, Economist