Korea: Economic activity drops again in October
Latest reading: Economic activity fell 0.3% in month-on-month seasonally adjusted terms in October, which matched September’s 0.3% decrease. The ongoing drop was driven by lower construction and public administration output outweighing higher services output. Construction has been a particular weak spot this year, with output falling for the sixth straight month in October.
On an annual basis, economic activity grew 0.3% in October, contrasting September’s 0.2% fall.
Panelist insight: ING’s Min Joo Kang said:
“We believe that weak investment is the key drag on the economy. […] Ongoing restructuring in the construction sector hasn’t shown a sign of recovery yet even after the sixth monthly decline. Construction orders have rebounded but it will take time for overall construction to recover.”