South Korea’s August factory output posts biggest gain in over 3 years as chips jump

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 per cent in August from the previous month on a seasonally adjusted basis, after a 2.0 per cent fall in July, according to Statistics Korea.

That contrasts with a median 0.2 per cent fall forecast in a Reuters survey and marks the fastest monthly gain since June 2020.

Production of semiconductors rose 13.4 per cent and machineries, mostly for chip manufacturing, increased 9.7 per cent, while electronic components declined 3.8 per cent.

On an annual basis, output was 0.5 per cent lower, much milder than the previous month’s 8.1 per cent drop and a forecast for a 6.2 per cent 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 week, a hopeful sign for the global economy from the bellwether industrial economy. REUTERS