Korea: Industrial production slumps to five-month low in July
August 31, 2015
In July, industrial production decreased 3.3% over the same month last year, which contrasted the 1.4% increase recorded in June. The result was much weaker than the 1.2% decline that the markets had expected and marked the poorest result in five months. According to the Korea National Statistics Office, July’s contraction mainly reflected a fall in manufacturing production. In contrast, the Statistics Office also reported that the construction, services and public administration sectors tallied increases.
A month-on-month comparison corroborates the deterioration suggested by annual data. Industrial production fell a seasonally-adjusted 0.5% in July, which contrasted the 1.4% increase tallied in June. Moreover, annual average growth in industrial output deteriorated from minus 0.8% to minus 1.4%, which marked the lowest level in almost seven years.
Author: Carl Kelly, Economist