Increased industrial output led to point gain, experts say
The monthly index of leading economic indicators rebounded in May for South Korea. However, it is too early to maintain optimism about the Korean economy in the second half of the year, experts warned, as the yearly leading economic indicators still predicted a contraction.
According to May figures for industrial output released by the National Statistical Office (NSO) on June 29, the May index of leading indicators rose 0.2 percentage points from April, reversing a third consecutive month of contraction.
Industrial output rose 1.7 percent in May, compared with a 1.4 percent fall in April. Compared with the same month a year ago, industrial production in May gained 11.6 percent, the fastest growth since this February, when it saw a 20.6 percent jump. The index for sale of consumer goods rose 1.5 percent in May from a month ago and increased 5.8 percent from a year ago. While industrial production and sales of consumer goods picked up speed, the index measuring the overall current economic condition was down 0.2 percentage points from a month ago. The year-on-year index of leading economic indicators decelerated for a fourth consecutive month. In May, the index of leading indicators was up 5.4 percent from a year ago, slowing from a 5.8 percent rise in April. ¡°It is still difficult to judge that the economy has hit its peak [for the year], because history shows that some leading economic indicators have risen even after falling for three to four months,¡± said Choi In-keun, director of NSO¡¯s economy statistics bureau.
