South Korean factory output falls further than anticipated

(Sharecast News) - South Korea's factory output contracted more sharply than anticipated in November, reflecting mounting challenges from slowing exports and waning business confidence. According to Statistics Korea, the industrial output index declined by 0.7% on a seasonally adjusted basis, reversing expectations of a milder 0.4% drop based on a Reuters survey.

That followed stagnant growth in October.

On an annual basis, factory output grew by a modest 0.1%, a sharp slowdown from October's 6.3% increase and below economists' expectations of a 0.4% rise.

The decline underscored broader economic pressures as South Korea faces weakening demand in key markets.

Export growth in November slowed to its lowest rate in 14 months, with shipments to major trade partners like the United States and China declining amid ongoing tariff-related uncertainties, Reuters noted.

Meanwhile, business sentiment in December fell to its lowest level in over four years, further highlighting the country's economic headwinds.

Reporting by Josh White for Sharecast.com.