South Korea's Factory Output Plunges on Weak Exports and Confidence

South Korea's factory output fell sharply in November, according to government data released Monday by Statistics Korea, exceeding economists' forecasts and signaling further strain on the manufacturing sector. The industrial output index (KRIO) dropped 0.7% on a seasonally adjusted monthly basis, compared to expectations of a 0.4% decline, as reported by Reuters. The index also registered a significant slowdown in annual growth, rising just 0.1% year-on-year, down from 6.3% in October and well below the 0.4% forecast.This unexpected slump in factory output follows a disappointing October, where South Korea's export growth hit a 14-month low. Shipments to key markets like the United States and China declined amid ongoing trade tensions and tariff uncertainty. The country's business sentiment also hit a more than four-year low this month, indicating widespread business unease.The Bank of Korea (BOK) has already cut interest rates twice this year to cushion the economy from a global slowdown. However, Monday's dismal factory output data suggests that the central bank faces an uphill battle to stimulate growth.

Given that the factory index is often seen as a leading indicator of overall economic activity, the sharp decline in November raises concerns about the health of the South Korean economy.

This downturn in factory output underscores the challenges facing South Korea's manufacturing sector, as the country grapples with weakening global demand, trade conflicts, and domestic business uncertainty.

##South Korea's Factory Output Plunges on Weak Exports and Confidence

South Korea's factory output took a sharp downturn in November, exceeding economists' forecasts and signaling further strain on the manufacturing sector, according to government data released Monday by Statistics Korea. The industrial output index (KRIO) fell 0.7% on a seasonally adjusted monthly basis, compared to expectations of a 0.4% decline, as reported by Reuters. The index also registered a significant slowdown in annual growth, rising just 0.1% year-on-year, down from 6.3% in October and well below the 0.4% forecast.

This unexpected slump in factory output follows a disappointing October, where South Korea's export growth hit a 14-month low. Shipments to key markets like the United States and China declined amid ongoing trade tensions and tariff uncertainty. The country's business sentiment also hit a more than four-year low this month, indicating widespread business unease.

The Bank of Korea (BOK) has already cut interest rates twice this year to cushion the economy from a global slowdown. However, Monday's dismal factory output data suggests that the central bank faces an uphill battle to stimulate growth.

Given that the factory index is often seen as a leading indicator of overall economic activity, the sharp decline in November raises concerns about the health of the South Korean economy. This downturn in factory output underscores the challenges facing South Korea's manufacturing sector, as the country grapples with weakening global demand, trade conflicts, and domestic business uncertainty.