S Korea industrial output up 0.3% in July, falls 1.6% from June

31 August 2012 04:24  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s industrial output rose by 0.3% year on year in July, but shrank from a month earlier because of the global economic slowdown, government data showed on Friday.

On a month-on-month basis, production in the mining, manufacturing, gas and electricity industries fell by 1.6% in July, compared with June when it dropped by 0.6%, according to Statistics Korea.

“Production fell solidly at manufacturing firms in South Korea during July,” UK-based banking firm HSBC said in a report for its monthly purchasing managers’ index (PMI) survey for South Korea.

“The pace of contraction was the fastest recorded since December 2011. Panellists attributed lower production to the global economic slowdown,” HSBC said.

The HSBC South Korea PMI registered 47.2 in July, down from 49.4 in June, indicating a further deterioration in the health of the manufacturing sector.

PMI readings above 50.0 signal an improvement in business conditions, while readings below 50.0 signal deterioration.

The South Korea PMI also showed that new orders in July declined at the fastest rate since last December, while new export business decreased for the second straight month amid reports of a downturn in the international economic climate.

By: Nurluqman Suratman

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