The South Korean economy advanced 0.7 percent quarter-on-quarter in the three months to June 2018 after a 1 percent expansion in the previous period and matching market expectations. The slowdown was explained by softer expansions in manufacturing and services and contractions in primary activity and construction, more than offsetting a sharp rebound in utilities, preliminary estimates showed.
Slower increases were recorded for manufacturing (+0.7 percent vs +1.6 percent in Q1) and services (+0.6 percent vs +1.1 percent), and contractions in primary activity (-2.5 percent vs +6.0 percent) and construction (-2.3 percent vs +2.1 percent), more than offsetting a sharp rebound in utilities (+9.7 percent vs -7.0 percent).
By expenditure, the softer overall growth was explained by a sharp 2.7 percent decline in gross fixed capital formation (vs +2.0 percent), with facilities falling 6.6 percent (vs +3.4 percent); construction 1.3 percent (vs +1.8 percent); and intellectual property rights 0.7 percent (vs +0.3 percent). Also, final consumption expenditure expanded less (0.3 percent after a 1.1 percent expansion in the first quarter), with both private and public spending rising 0.3 percent. Meantime, exports grew only 0.8 percent (vs +4.4 percent) and imports declined 2.6 percent (vs +4.9 percent).
Year-on-year, the economy advanced 2.9 percent in the second quarter of 2018, slightly above the 2.8 percent in the previous quarter but below the 3 percent expansion expected by consensus.
7/26/2018 9:42:39 AM