[The Korea Times] Production Diffusion Index Hits 11-Month High

05-06-2009 19:19

Production Diffusion Index Hits 11-Month High
By Lee Hyo-sik Staff ReporterThe nation's diffusion index for industrial production exceeded 50 in March for the first time in 11 months, adding to growing optimism that the Korean economy has hit bottom and is laying the foundation for an upturn.According to the National Statistical Office (NSO) Wednesday, the diffusion index covering 165 manufacturing and services sectors stood at 56.7 in March, up from 45.2 in the previous month. It means 56.7 percent of 165 industries produced more than they did in February, while the remaining 43.3 percent cut output.The index remained below 50 for the past 11 months since May of last year and it fell to as low as 27.6 in January.``The diffusion index acts like a leading indicator for economic conditions in six to nine months. The index over 50 tells us that the majority of industrial sectors have begun producing more compared to past months, further raising expectations that the world's 13th largest economy may start rebounding in the second half of the year,'' an NSO official said.In March, after adjusting for seasonal factors, the nation's industrial output rose 4.8 percent from February, rising for the third straight month. Additionally, key indexes measuring current economic conditions and the future outlook rose together for the first time in 14 months.Korea's current account surplus reached $6.65 billion in that month, the largest since the Bank of Korea began compiling the data, while gross domestic product grew 0.1 percent in the first quarter of the year from the preceding quarter, compared to a 5.1 percent contraction in the last quarter of 2008.The manufacturers' diffusion index stood at 62.2 in March, up from 38.5 in February, rising for the second straight months, with that of the services industry increasing to 51.3 from 49.4.Among manufacturing sectors, makers of cigarettes, and visual and audio products produced more than in February for the third consecutive month, while textile and 19 other businesses reduced output.In the services industry, food and beverage retailers and 12 other businesses saw an increase in sales for the three straight months. But sellers of construction materials and 17 other sectors recorded a fall in output.
[출처] [The Korea Times] Production Diffusion Index Hits 11-Month High (SIMTOS2010, 서울국제공작기계전) 작성자 youngjean2