South Korea factory output posts surprise jump in August, led by chips
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South Korea’s production of semiconductors rose 13.4 per cent and machinery, mostly for chip manufacturing, increased 9.7 per cent.
PHOTO: REUTERS
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SEOUL – South Korea’s factory output unexpectedly jumped in August by the fastest rate in more than three years, led by chip production, official data showed on Wednesday.
The industrial output index rose 5.5 per cent in August from the previous month on a seasonally adjusted basis, after a 2 per cent fall in July, according to Statistics Korea.
This contrasts with a median 0.2 per cent fall forecast in a Reuters survey and marks the fastest monthly gain since June 2020.
Production of semiconductors rose 13.4 per cent and machinery, mostly for chip manufacturing, increased 9.7 per cent, while electronic components declined 3.8 per cent.
Commenting on the data, the Finance Ministry said the significant improvement in August suggested a manufacturing and exports-led recovery in the third quarter, together with solid September trade figures.
On an annual basis, factory output was 0.5 per cent lower, much milder than the previous month’s 8.1 per cent drop and a forecast for a 6.2 per cent loss.
South Korea’s exports slowed their fall in September to the mildest decline in a year-long downturn, separate data showed earlier in October, a hopeful sign for the global economy from the bellwether industrial economy.
Across all industries, production rose 2.2 per cent in August over the previous month, the biggest increase since February 2021, as the services sector also gained, rising 0.3 per cent. REUTERS
