South Korea March factory output worse than expected, services shine

[SEOUL] South Korea's industrial output fell by a seasonally adjusted 2.2 per cent in March from February, data showed on Friday, falling far behind market expectations and failing to sustain the previous month's strong growth.

The median forecast in a Reuters survey of economists was for the industrial output index to edge up by 0.1 per cent in March on a monthly basis.

The February production index was revised slightly downward to a 3.2 per cent gain from a preliminary 3.3 per cent rise reported earlier, which was the fastest gain in nearly six and a half years.

On a year-on-year basis, industrial output declined 1.5 per cent in March after a revised 2.2 per cent gain in February, also lagging the median 0.8 per cent gain forecast in the Reuters survey.

The statistics agency data also showed service-sector output rose by a seasonally adjusted 0.8 per cent in March on-month after a revised 0.1 per cent rise in February. It was the fastest pace of growth since late 2014.

REUTERS