SEOUL (Reuters) – 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% in August from the previous month on a seasonally adjusted basis, after a 2.0% fall in July, according to Statistics Korea.
That contrasts with a median 0.2% fall forecast in a Reuters survey and marks the fastest monthly gain since June 2020.
Production of semiconductors rose 13.4% and machineries, mostly for chip manufacturing, increased 9.7%, while electronic components declined 3.8%.
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% lower, much milder than the previous month’s 8.1% drop and a forecast for a 6.2% loss.
South Korea’s exports slowed their fall in September to the mildest decline in a year-long downturn, separate data showed earlier in the month, a hopeful sign for the global economy from the bellwether industrial economy.
Across all industries, production rose 2.2% in August over the month, the biggest increase since February 2021, as the services sector also gained 0.3%.
(Reporting by Jihoon Lee; Editing by Tom Hogue and Sonali Paul)
