South Korea factory output grows faster than expected

SEOUL : South Korea's industrial production grew faster than expected in May, figures showed Thursday, raising hopes the

Published June 30, 2011 Updated June 30, 2011 05:20am

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By Syed Murtaza Gheblehzadeh

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Production increased 8.3 percent from a year earlier compared with a 6.9 percent rise in April, Statistics Korea said.

From a month earlier, output rose 1.7 percent compared to a revised 1.7 percent decline in April.

Increases in the semiconductor, parts and machinery equipment sectors fuelled the rise in output, Statistics Korea said in a report.

The government's target for overall economic growth this year is five percent but it is struggling to damp down growing inflationary pressure.

Europe's debt crisis, continuing unrest in Arab countries and Japan's devastating earthquake are also potential risk factors for the export-dominated economy.

However, the 12-month average leading index -- a key predictor of the economy's performance for the coming months -- was 1.3 percent higher year-on-year, compared with a 1.1 percent rise in April.

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