Korea: Industrial production tumbles to two-year low in February
March 31, 2015
In February, industrial production contracted 4.7% over the same month last year, which contrasted the 1.7% increase recorded in January. February’s print exceeded the 2.5% decline that the markets had expected. According to the Korea National Statistics Office, February’s contraction reflected a significant fall in manufacturing production. The services industry grew at a slightly faster pace, while the construction and public administration sectors returned to growth.
A month-on-month comparison does not corroborate the improvement suggested by annual data. Industrial production rose a seasonally-adjusted 2.6% in February, which contrasted the 3.8% decrease tallied in January. However, given the negative annual growth rate, annual average growth in industrial output slumped from plus 0.6% in January to minus 0.1% in February.
Author: Carl Kelly, Economist