South Korea February factory output rebounds more than expected

SEOUL (Reuters) - South Korea's industrial output in February rebounded much more than expected from the previous month led by automobile and semiconductor sectors, data showed on Tuesday, helping ease some of the concerns on the economy.

Industrial output last month rose by a seasonally adjusted 2.6 per cent on monthly terms, the Statistics Korea data showed, recovering most of the 3.8 per cent drop in January. The January reading was revised from a preliminary 3.7 per cent fall.

The median forecast from a Reuters survey of 16 analysts had tipped February industrial output to edge up by a seasonally adjusted 0.4 per cent from January, with forecasts spread widely between a 2.0 per cent drop and a 2.5 per cent gain.

On year ago basis, however, February's industrial output dropped 4.7 per cent, missing a 1.5 per cent decline tipped by the Reuters survey.

Service sector output in February rose a seasonally adjusted 1.6 per cent on monthly terms, more than recouping a revised 0.6 per cent fall in January. The gain was the fastest seen since February 2012.