Korea industrial production (July2017):Factory output rebounds

Industrial production (IP) rebounded firmly in July, beating market expectations,although the gain was accompanied modest downward revisions to the previoustwo months. Electronics led strength in factory output, while production inautomobiles stopped falling. The near-term production outlook remains mixed,with inventory conditions supportive for electronics but not as much for other keyindustries. Meanwhile, all industry output was pushed up by strong constructionactivity, which is set to fade in 2H17. As such, we expect real GDP growth to showlittle sign of accelerating in 2H17.