Industrial Production fell 1.7% m/m in September (Aug: +3.4% m/m). The marked weakness in September was due to a deterioration in industrial production. In addition, mining production decreased.
On a year-on-year basis, industrial production rose at a faster rate of 9.6% in September (August: +5.8% yoy), the best result since July 2021. Moreover, the trend improved significantly, with the average annual variation of industrial production approaching . at 0.2%, compared to August’s reading of 0.8%.
ING’s Min Joo Kang commented:
“The near-term production outlook is hazy as companies cut their production plans for the month of October, with a -0.4% drop in October compared to a gain of 3.2% in the previous month.”
Members of the FocusEconomics Economic Consensus Forecast Committee expect industrial production to grow 2.6% in 2023, up 0.1 percentage point from last month, and 2.3% in 2024.