The South Korean economy expanded 3.6 percent year-on-year in the third quarter of 2017 according to the advance estimate, comfortably surpassing the 2.7 percent expansion in Q2 and well above the 3.2 percent growth expected by consensus. Faster GDP expansion was explained by further growth in manufacturing, utilities and services, more than offsetting slower expansion in construction.
By economic activity, manufacturing went up a sound 6.4 percent, well above the 3.2 percent growth in the previous quarter. Utilities (+2.9 percent vs 2.5 percent) and services (+2.2 percent vs 1.9 percent) also gained steam in the third quarter. In contrast, construction advanced at a 6.8 percent pace in the three months to September of 2017, moderately below the 7.7 percent expansion of the previous quarter. It was the second straight quarterly loss of steam.
On the expenditure side, government consumption expanded further in the third quarter (4.6 percent vs 3.1 percent), while private spending edged up to a 2.4 percent growth (vs 2.3 percent in the previous three months). In contrast, gross fixed capital formation lost steam for a second straight quarter, rising 9.1 percent after a 9.6 percent advance in Q2: construction and facilities grew less, while intellectual property products expanded at a faster clip. Meanwhile, exports advanced 5.0 percent (vs 0.0 percent in Q2) and imports 8.4 percent (vs 6.4 percent).
On a quarterly basis, the economy expanded 1.4 percent, also surpassing estimates (1.0 percent) and the 0.6 percent growth for the second quarter.
10/26/2017 11:16:43 AM