S. Korea June Factory Output Rises for a Sixth Month
South Korea’s manufacturers increased production at the fastest pace in four months in June, a sixth consecutive advance, amid signs global demand for the nation’s cars and electronics is picking up.
Factory production rose 5.7 percent from May, when it gained a revised 1.5 percent, the National Statistical Office said today in Gwacheon. That compared with a 2 percent median estimate in a survey of economists. From a year earlier, output fell 1.2 percent, the smallest drop in nine months.
A revival in overseas shipments and consumer spending helped Asia’s fourth-largest economy expand at the fastest pace in almost six years in the second quarter. Optimism about a rebound sent manufacturers’ confidence to a 14-month high and the Kospi share index is up 38 percent this year.
“Exports have been performing relatively well and demand at home helped overall production,” said Go You Sun, an economist at Daewoo Securities Co. in Seoul. “There aren’t strong signs that demand is back, but a gradual pickup is likely.”
Other regions are enjoying a rebound in output as well. Japan’s industrial production increased 2 cash loans in 1 hour.4 percent from May, the fourth monthly increase, capping the biggest quarterly gains since 1953, a government report released yesterday showed.
Samsung Electronics Co.’s quarterly profit rose to the highest in more than two years, exceeding analysts’ estimates, fueled by higher sales of televisions and mobile phones. Hyundai Motor Co., South Korea’s largest automaker, reported record quarterly profit, with net income gaining 48 percent in the second quarter.
Government Forecast
South Korea may expand in the second half of 2009, the government said yesterday, adding that it is set to meet its 2009 economic forecast. The government said on June 25 gross domestic product will shrink 1.5 percent this year, less than an April forecast of a 2 percent contraction.
A leading index of economic indicators, which provides a gauge of future business activity, climbed 6 percent in June from last year, the report showed today. Sales of consumer goods rose 1.8 percent from May, while inventories gained 0.4 percent from May.