SEOUL: South Korea's November factory output and service-sector activity expanded from October, data showed on Thursday, Dec 30, suggesting resilience in Asia's fourth-largest economy in the face of depressed global demand.
Analysts said the upbeat set of data indicated the economy was being powered by recovering demand at home and from emerging-market economies.
In November, industrial output rose 1.4 percent, service-sector output gained 0.8 percent and retail sales grew 2.9 percent, all on a seasonally adjusted basis from the previous month, data from the statistics agency showed.
"Given a rebound in China's leading indicator this week and signs of U.S. economic recovery, we think a soft landing will be possible in the (South Korean) economy," said So Jae-yong, economist at Hana Daetoo Securities.
"We expect the leading indicator to hit a bottom in December and the economy is likely to bottom up in the first quarter (of 2011)."
He was referring to the continued slowdown in annual growth in the composite leading indicator in South Korea, compiled from forward-looking data such as business and consumer sentiment measures.
The indicator rose 2.6 percent in November from a year earlier after a 3.4 percent rise in October, extending its losing streak in annual growth into an 11th consecutive month.
The data was released before financial markets opened.
Separately, the central bank said the current account surplus in November more than halved to $1.93 billion from a $4.89 billion surplus in October. It was the ninth month in a row that the country posted a current account surplus.
Robust exports on the back of a cheap won against rival currencies and efforts by South Korean electronics and machinery makers to strengthen marketing in emerging markets have kept the current account in surplus. - Reuters
Analysts said the upbeat set of data indicated the economy was being powered by recovering demand at home and from emerging-market economies.
In November, industrial output rose 1.4 percent, service-sector output gained 0.8 percent and retail sales grew 2.9 percent, all on a seasonally adjusted basis from the previous month, data from the statistics agency showed.
"Given a rebound in China's leading indicator this week and signs of U.S. economic recovery, we think a soft landing will be possible in the (South Korean) economy," said So Jae-yong, economist at Hana Daetoo Securities.
"We expect the leading indicator to hit a bottom in December and the economy is likely to bottom up in the first quarter (of 2011)."
He was referring to the continued slowdown in annual growth in the composite leading indicator in South Korea, compiled from forward-looking data such as business and consumer sentiment measures.
The indicator rose 2.6 percent in November from a year earlier after a 3.4 percent rise in October, extending its losing streak in annual growth into an 11th consecutive month.
The data was released before financial markets opened.
Separately, the central bank said the current account surplus in November more than halved to $1.93 billion from a $4.89 billion surplus in October. It was the ninth month in a row that the country posted a current account surplus.
Robust exports on the back of a cheap won against rival currencies and efforts by South Korean electronics and machinery makers to strengthen marketing in emerging markets have kept the current account in surplus. - Reuters
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