Thursday, December 29, 2011
South Korean industrial production declines
Demand in the construction and service sector led to output shrinking .4 per cent from October. The results were worse than many analysts had predicted.
THe biggest declines were spending on equipment in construction but also in the service industry. Demand may be slowing because of high household debt in South Korea. However, the general global slowdown also is having an impact as the South Korean economy is export oriented.
The Bank of Korea reports that the manufacturing sentiment index has fallen to a record low level. Manufacturers are worried about the global economic slowdown. The index fell from 83 to 79 from last month. This is the worst outlook since 2009.
The figures look less gloomy when compared on a yearly basis. For example, industrial output in November this year was up 5.6 per cent over last November. For more see this article.