Korea: Industrial activity contracts at sharpest pace since December 2022 in July
Industrial output decreased 3.6% in month-on-month seasonally adjusted terms in July, which contrasted June’s 0.7% increase and was well below market expectations. The figure marked the worst reading since December 2022. That said, temporary factors such as labor strikes, summer maintenance-related halts, and inventory management by semiconductor firms likely dampened the reading. Looking at the details of the release, July’s downturn was driven by falls in the manufacturing, electricity, gas and steam, and mining and quarrying sub-sectors.
On a seasonally adjusted annual basis, factory output rose at a softer pace of 3.9% in July (June: +4.9% yoy).