South Korea April industrial output limps even as exports surge
Reuters
Published May 31, 2017 01:16
South Korea April industrial output limps even as exports surge
By Cynthia Kim
SEOUL (Reuters) - South Korea's industrial output declined unexpectedly in April from March even as exports surged for the sixth straight month.
Industrial output fell 2.2 percent in April from March on a seasonally adjusted basis, data from Statistics Korea showed on Wednesday, missing the 0.8 percent rise expected by economists in a Reuters survey.
In annual terms, factory output in April rose 1.7 percent after a revised 3.3 percent gain in the previous month.
The March industrial production index was revised up to a 1.2 percent rise on-month from the 1 percent rise reported earlier.
Wednesday's unflattering outcome adds an element of uncertainty for the Bank of Korea, which plans in July to upgrade the economic growth outlook for this year from the current 2.6 percent.
Production of semiconductors and cars dropped 9.2 percent and 2.6 percent on-month respectively, indicating the limits to growth for local industries' limits soaring exports.
"Demand for semiconductors, which has been boosting overall exports, seems to be slowing the second quarter," said Park Jung-woo, economist, Korea Investment and Securities.
"Exports posted double-digit growth throughout the first quarter, and cannot maintain that so the pace of expansion will come down to a high-single digit in the months ahead," Park said.
South Korea last month raised its export outlook for the year after first quarter economic growth accelerated to 0.9 percent from 0.5 percent quarterly expansion in the previous period.
"Growth momentum is still there and will continue to improve," a Statistics Korea official from said after the data was released.
Market participants will be looking to May export numbers due June 1 for further clues on global demand, with analysts predicting a 13.6 percent jump from a year earlier.
Service sector output rose 0.1 percent in April in seasonally adjusted monthly terms.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.