SEOUL, KOREA - October investment in plants and equipment has increased by the largest margin in 17 years. Mining and manufacturing output for the month also hit an 11-month high, which points to a possible recovery ahead.

 

 

According to a report "October 2013 Industry Activity" published by the National Statistical Office on November 29, mining and manufacturing output during the month of October rose 1.8 percent from the previous month, due to the end of labor disputes in major automobile manufacturing sites as well as the general trend toward economic recovery. This is the largest uptick since November last year when the month-on-month output rose 2.1 percent.

 

Buoyed by a rise in mining and manufacturing output, the overall industrial output in November increased 1.4 percent from the previous month. The month's capacity use for all manufacturing sector was 75.6 percent, up 2.2 percentage points from September's 73.4 percent.

 

The rise in facility investment for the month was 19.3 percent from September, the highest level since July 1996 when the comparable figure was 21.0 percent. Investment in transportation equipment rose most to 62.7 percent month on month owing to imports of new aircraft by Korean Air and others. Investment in machinery also rose 9.3 percent, raising the expectations for a good time ahead. The comparable figure for September was only 1.3 percent.