South Korea industrial output jumps on strong exports

Strong exports helped South Korean industrial output rise at its fastest pace in six months in February, government data showed on Tuesday, although domestic consumption showed no sign of an immediate turnaround.
The data emphasised the clear divide between booming exports and sluggish local consumption, which is leaving the economy more exposed to fluctuations in the exchange rate and raw material prices.
Industrial production in February rose by a seasonally adjusted 2.9 percent from January, more than twice as fast as a median forecast for 1.3 percent growth in a Reuters poll, the National Statistical Office said in a statement.
The growth was the third consecutive monthly gain and followed a revised 1.1 percent rise in January.
However, domestic consumption remained weak with the wholesale and retail sales index down by a seasonally adjusted 0.4 percent in February from January, snapping an encouraging 1.9 percent rise in January.
Industrial output grew 16.6 percent in February from a year ago, versus a revised rise of 4.6 percent in January and a 9.9 percent jump in February 2003, the statistical office said.
The average factory operation rate stood at 83.5 percent in February, the highest since October 1987 when the rate hit 83.9 percent as companies were still reluctant to expand production facilities despite stronger demand.
Separately the central bank released data on Tuesday showing the current account surplus in February was its highest in more than five years, bolstered by robust exports of micro-chips, cars and mobile phones.
Last month, exports on a customs-cleared basis jumped 45.9 percent, the biggest monthly rise in more than 15 years.
The current account surplus was $3.06 billion in February, jumping from a $5.2 million surplus in the same month last year.
It was the 10th consecutive monthly surplus in the world's 12th largest economy, after a $2.34 billion surplus in January.
In addition to stronger exports, a smaller service account deficit and larger income account surplus helped boost the overall current account surplus, the central bank said.
The current account surplus reached $5.41 billion in the first two months of the year, compared with a $455 million deficit a year earlier. The current account includes payments for trade and such investment income as interest and dividends.