South Korea’s gross domestic product expanded a seasonally adjusted 1.2 percent on quarter in the third quarter of 2015, the Bank of Korea said in Friday’s preliminary report.
That handily topped expectations for an increase of 0.8 percent following the 0.3 percent gain in the second quarter.
Real gross domestic income advanced 1.0 percent on quarter.
On the expenditure side, private consumption increased 1.1 percent as expenditures on both services and durable goods increased.
Construction investment gained 4.5 percent, with increases in both building construction and civil engineering.
Facilities investment advanced 2.0 percent, mainly due to the growth of investment in machinery and equipment, offsetting the decline of investment in transport equipment.
Exports contracted 0.2 percent, with decreases in exports of LCDs, chemical products and ships. Imports were up 1.3 percent as imports of petroleum and coal products and electronic equipment increased.
On the production side, manufacturing edged up 0.1 percent, centering on the production of semiconductors and mobile phones.
Electricity, gas and water supply jumped 7.9 percent as the volume of electric power sold expanded due to the rise of mean temperatures in August and September – as well as the proportion of electricity generated by nuclear power, with its low per-unit generation costs, increased.
Construction jumped 5.3 percent, led by an expansion of building construction.
Services expanded 1.0 percent as wholesale and retail trade, restaurants and hotels, transportation and storage, and health and social work all increased. They had declined in the previous quarter, mainly due to MERS.
On a yearly basis, GDP jumped 2.6 percent – also exceeding forecasts for 2.4 percent and up from 2.2 percent in the three months prior.
Individually, agriculture dipped 0.6 percent, while manufacturing added 1.7 percent, utilities spiked 9.1 percent, construction gained 4.3 percent and services advanced 2.6 percent.
The material has been provided by InstaForex Company – www.instaforex.com