South Korea’s December industrial production likely recovered after shrinking in past two months

South Korea's December industrial production is likely to have recovered after it registered contraction in October and November. According to the exports data for December, there is a clear contrast between weakness in the electronics sector and strength in other important sectors that should be indicated in the production data.

"We estimate that the weakness in electronics sectors such as semiconductors and mobile phones won't have fully offset the strength in nonelectronics sectors like auto, chemical, steel and general machinery, resulting in a modest increase in overall industrial production", says Societe Generale.

Weakness in industrial production is expected to carry on in the near future, along with weakness in exports.