South Korea's Factory Output Surges in August

SEOUL (Reuters) – South Korea's factory output in August exceeded market expectations, marking the largest increase in a year, driven by car and chip production, according to government data released on Monday.

The industrial output index saw a 4.1% increase month-over-month on a seasonally adjusted basis, rebounding from a 3.9% decline in the prior month, as reported by Statistics Korea.

This rise surpassed the 2.0% growth predicted in a Reuters poll and represents the most significant gain since August 2023.

Production in the automobile sector soared by 22.7%, while semiconductor production rose by 6.0%.

The finance ministry attributed the sharp rebound in industrial production to the easing of output disruptions within the auto industry following the data release. "The manufacturing sector-led economic recovery is ongoing, with exports anticipated to grow for a 12th consecutive month in September," the ministry stated.

Year-over-year, the industrial output index increased by 3.8%, down from 5.2% in the previous month and below the 1.9% anticipated by economists.

Additionally, data released on Monday showed that retail sales increased by 1.7% in August, reversing a 2.0% decline in July, marking the largest monthly rise since February 2023.