Korea Industry May 2016


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.

FocusEconomics Consensus Forecast panelists expect industrial production to contract 0.8% in 2016, which is unchanged from last month’s forecast. For 2017, panelists expect industrial output to increase 1.7%.

Author:, Senior Economist

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Korea Industry Chart

Korea Industry May 2016 0

Note: Year-on-year and annual average var. of industrial production index in %.
Source: Korea National Statistics Office (KOSTAT).

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