Korea: Industry drops to four-month low
February 28, 2014
In January, industrial production declined 3.8% over the same month last year, which contrasted the 2.9% rise tallied in December. In addition, the figure undershot market expectations of a 1.8% decline. The larger-than-expected drop was caused by the Lunar New Year holidays; there were just 22 working days in January, whereas there were 24 working days in the same month last year.
On month-on-month basis, industrial production increased 0.1% in seasonally adjusted terms, which came in well below the 2.4% expansion recorded in December. Owing to the negative reading, annual average growth in industrial production swung from 0.4% in December to minus 0.7% in January.
FocusEconomics Consensus Forecast panelists expect industrial production to rise 1.8% this year, which is down 0.3 percentage points from last month's forecast. For 2014, participants expect industrial output to pick up to 4.9%.
Author: Ricardo Aceves, Senior Economist