Korea: Industrial production slows in September
October 29, 2010
In September, industrial production rose 3.9% over the same month last year. The figure came in at a fraction of the revised 16.9% increase recorded in August (previously reported: +17.1% year-on-year) and fell short of market expectations of an 8.7% rise. In fact, the reading marked the slowest pace in the last 12 months. According to the Korea National Statistics Office (KOSTAT), the dismal reading was strongly influenced by a ?longer than usual? Chuseok harvest festival, as factories shut down for more than a week during September. The deterioration over the previous month was broad-based, as all the three main industrial sectors slowed compared to the previous month. Manufacturing, which accounts for the bulk of industrial output, increased 4.0% annually (August: +17.2% yoy), the mining sector dropped 20.2% (August: -16.3% yoy) and electricity and gas supply grew 3.1% (August: +10.9% yoy). A month-on-month comparison does not corroborate the deterioration seen in the annual figures. While industrial production fell 0.35% over the previous month on a seasonally adjusted basis, the reading was up from 1.32% fall recorded in August.
Author: Armando Ciccarelli, Head of Data Solutions