Posted on June - 28 - 2011
S.Korea factory output grows faster than expected
SEOUL – SOUTH Korea’s industrial production grew faster than expected in May, figures showed on Thursday, raising hopes the economic recovery is maintaining momentum.
Production increased 8.3 per cent from a year earlier compared with a 6.9 per cent rise in April, Statistics Korea said. The May increase was also better than the 6.7 per cent forecast by economists polled by Dow Jones Newswires.
From a month earlier, output rose 1.7 per cent compared to a revised 1.7 per cent decline in April. Increases in the semiconductor, parts and machinery equipment sectors fuelled the rise in output, Statistics Korea said in a report.
The government’s target for overall economic growth this year is five per cent but it is struggling to damp down growing inflationary pressure.
Europe’s debt crisis, continuing unrest in Arab countries and Japan’s devastating earthquake are also potential risk factors for the export-dominated economy.
However, the 12-month average leading index – a key predictor of the economy’s performance for the coming months – was 1.3 per cent higher year-on-year, compared with a 1.1 per cent rise in April. — AFP
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