South Korea’s quarterly GDP growth was revised lower to 1.0 percent in the three months to June 2019 from a preliminary estimate of 1.1 percent and compared to a 0.4 percent contraction in the previous period. It was the strongest growth rate since the first quarter of 2018, as manufacturing, construction and utilities output rebounded firmly.
On the production side, manufacturing output grew 1.1 percent (vs preliminary 1.8 percent and -3.3 percent in Q1), mainly due to gains in computer, electronic and optical products; and construction advanced 1.6 percent (vs preliminary 1.4 percent and -1.0 percent in Q1), boosted by an increase in specialized construction. Additionally, utilities output jumped 10.7 percent (vs preliminary 8.3 percent), after showing no growth in the first quarter of the year. Services activity expanded 0.8 percent (vs preliminary 0.6 percent) to match the growth print for the prior quarter, led by health & social work and business activities; while agriculture, forestry & fishing shrank 3.6 percent (vs preliminary -3.7 percent), after expanding 4.7 percent in the previous period.
9/3/2019 11:13:27 AM
On the expenditure side, final consumption expenditure rose an unrevised 1.1 percent (vs 0.2 percent in Q1), boosted by both private consumption (0.7 percent vs 0.1 percent in Q1) and government expenditure (2.2 percent vs 0.4 percent in Q1). Gross fixed capital formation went up 1.6 percent (vs preliminary 1.3 percent and -2.8 percent in Q1) led by investment in construction and facilities. Meantime, exports climbed 2.0 percent (vs preliminary 2.3 percent and -3.2 percent in Q1) and imports rose at a faster 2.9 percent (vs preliminary 3.0 percent and -3.4 percent in Q1).
On an annual basis, the economy expanded 2.0 percent in the second quarter, faster than a 1.7 percent growth in the previous quarter, but below the initial estimate of 2.1 percent.