S Korea Sept factory output shrinks as auto chip shortage bites
FILE PHOTO: Hyundai Motor's sedans are assembled at a factory of the carmaker in Asan, about 100 km (62 miles) south of Seoul, January 22, 2013. REUTERS/Lee Jae-Won/File Photo
SEOUL : South Korea's factory output in September declined from August and unexpectedly shrank on a year-on-year basis, ending a 10-month winning streak, as global chip shortages struck car production.
Industrial production last month fell by a seasonally adjusted 0.8per cent, Statistics Korea data showed on Friday, missing a median 0.3per cent decline forecast in a Reuters survey. It followed a 0.7per cent drop in August.
A breakdown of data showed production of cars shrank 9.8per cent from a month earlier, while that of semiconductors and electrical equipments also slumped 1.6per cent and 5.2per cent, respectively.
"September industrial output was weak as global supply chain disruptions were seen weighing on production in the manufacturing industry and on fewer working days (due to the national thanksgiving Chuseok Holiday)," said Oh Chang-sob, an economist at Hyundai Motor Securities.
On an annual basis, factory output unexpectedly contracted 1.8per cent, missing a 1.4per cent growth forecast in the poll and down from a 9.7per cent expansion in August.
Friday's data also showed the service sector output expanded 1.3per cent month-on-month in September, while retail sales jumped 2.5per cent.
(Reporting by Joori Roh; Editing by Christian Schmollinger and Stephen Coates)
