Korea: Industrial production slows in March
April 30, 2012
In March, industrial production added 0.3% over the same month last year, which was only a fraction of the strong 14.3% expansion recorded in February. The reading undershot market expectations, which had industrial production expanding 2.2%. The deceleration was broad-based, as all sub-components of the index slowed compared to the previous month. Compared to the previous month, industrial production dropped a seasonally adjusted 3.1%, contrasting the revised 0.6% expansion seen in February (previously reported: +0.8% month-on-month). Annual average growth decelerated to a 5.3% expansion in March from 6.1% increase in February, which 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.