South Korea’s Industrial Production Recovers Steadily As Monthly Growth Rate Rises To 1.9 Percent In September

The industrial production of South Korea is steadily recovering in September after it increased at its fastest rate in the past three months. Reuters reported on Thursday that the country's industrial output raised by 1.9 percent last month as compared to August.

According to reports, shipments of semiconductors and car inventions were among the factors that resulted to the increase of growth rate last month.

"Output was helped by new product shipments, mainly semiconductors used in new smartphone models," says HI Investment & Securities chief economist Park Sang Hyun. "However, a rise in inventories still means there is no rebound in exports."

Park goes on, "Still, it's yet too early to call for a rate cut and on top of that, it will be hard for the central bank to lower rates within the year."

The recent data revealed by the Statistics Korea on the increase of the country's industrial output smash predictions for a 0.3 percent increase from just 0.2 percent forecast in August.

Yearly industrial growth rate raised 2.4 percent, up from last month's 0.1 percent. The latest figures mark the best expansion since July 2014, as reported by Financial Times on Friday.

Economists had forecasted extensive weakness since South Korea is experiencing weak demands from China. However, South Korea's gross domestic production (GDP) grew at its fastest pace at 1.2 percent during the third quarter of the current year.

"However, tech manufacturing should tick up again this month, supported by stronger US growth and domestic demand," Moody's Analytics says. "Overall, industrial production will likely remain subdued through the rest of 2015."

Meanwhile, an official from the Finance Ministry says industrial production was anticipated to show steady recovery until the year ends. Also, the official reveals a continuing economic upturn was also definite.