Korea: Industrial production soars in May
May 31, 2016
In May, industrial production rebounded and jumped 4.3% over the same month last year. The result contrasted a revised 2.6% contraction registered in April (previously reported: -2.8% year-on-year) and vastly overshot the 1.0% increase the markets had expected.
Looking at the details, manufacturing output increased 4.5% year-on-year in May, which contrasted a 2.6% contraction in April. In addition, construction saw another massive annual increase (May: +20.2% yoy; April: +17.1% yoy) and the service industry sub-category showed a 3.4% expansion (April: +1.9% yoy)
A month-on-month comparison confirmed the improvement suggested by the annual data as industrial production increased 2.5% in May in seasonally-adjusted terms, which contrasted a 1.2% contraction in April. Due to the strong reading in May, the annual average variation in industrial output swung from minus 0.4% in April to 0.2% in May.
Author: Ricardo Aceves, Senior Economist