Business Coronavirus News

South Korea Factory Output Jumps

South Korea
Source: channelnewsasia.com

South Korea‘s factory production jumped at the fastest rate in more than 11 years in June and much quicker than expected.

Industrial production rose by a seasonally adjusted 7.2 percent month on month in June, sharply reversing a seven percent decline in May and the fastest growth since February of 2009.

A breakdown of data showed production of semiconductor, the country’s top export rose by 3.8 percent from May on demands of dram chips for service.

While cars and electric devices surged 22.9 percent and 13.7 percent respectively.

From a year earlier, factory edged down 0.5 percent but that was slower than the previous month’s 9.8 percent decline.

While more economies have reopened their economies from coronavirus curbs, weak demand on surging infections across the world will likely weigh on the trade-reliant economy for some time.

Factory output data from other countries, including China and the United States, has firmed in recent month, though the rate of recovery is seen slowing.

Now the nation’s outbound shipments were predicted to contract by 9.7 percent year-on-year in Jul, extending the decline to a fifth consecutive month.

South Korea is the largest Asian country to enter recession joining Japan, Thailand and Singapore after its economy marked its worst decline since the Asian financial crisis in the second quarter.

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