Korea industrial output grows faster than expected 1.1pct

01-Sep-2010 Intellasia | Wall Street Journal | 7:01 AM

South Korea’s industrial production grew faster than expected yet again in July in the latest sign that the local economic recovery still remains solid despite higher overseas uncertainties stemming from likely slower growth in its biggest export destinations such as the US and China.

In July, factory output rose a seasonally adjusted 1.1 percent from the preceding month, faster than the forecast for a 0.5 percent growth by nine economists polled by Dow Jones Newswires. From a year earlier, however, production grew 15.5 percent, coming slightly below expectations for a 15.8 percent growth, data from Statistics Korea showed Tuesday.

In the preceding month, output was up a revised 1.6 percent on month and 17.1 percent on year.

The 12-month average leading index–a closely watched leading indicator of how the economy would perform in the months to come–rose 6.7 percent from a year earlier, slowing from a revised growth of 7.1 percent in June, consolidating the view for the local economy’s soft landing into the year.

S Korea July Industrial Production Table Of Data INDEX PERCENTAGE CHANGE ON MONTH ON YEAR July June July June Industrial Production +1.1 +1.6 +15.5 +17.1 Producers Shipment Index +0.6 +1.7 +14.3 +15.1 -for domestic demand NA NA +12.8 +12.1 -shipment for exports NA NA +16.1 +19.1 Consumer goods sales +1.2 +2.4 +8.6 +3.8 Capital Investment -3.1 +8.0 +33.5 +23.8 Inventory +3.5 -0.2 +18.0 +15.6 Service Sector Output -1.0 +0.7 +3.4 +4.7 Average capacity utilisation rate in July 84.8 June 83.9

*Figures for July and June are preliminary.

*On-month changes are seasonally adjusted.

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