South Korea’s Factory Output in August

SEOUL (Reuters) – South Korea’s factory output in August exceeded market expectations, increasing the most in a year, driven by production of cars and chips, as reported by government data on Monday.

The industrial output index rose 4.1% month-over-month on a seasonally adjusted basis, following a 3.9% decline the previous month, according to Statistics Korea.

This increase surpassed a 2.0% gain forecasted in a Reuters poll of economists and marked the biggest rise since August 2023.

Production of automobiles surged 22.7%, while the semiconductor industry saw a 6.0% growth. The recovery in industrial production was attributed to fewer output disruptions in the automotive sector, according to the finance ministry’s comment following the data release.

The ministry noted, “The manufacturing sector-led economic recovery is continuing with exports expected to grow for a 12th consecutive month in September.”

On an annual basis, the industrial output index rose 3.8%, contrasting with a 5.2% gain in the prior month and the 1.9% that economists had anticipated.

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