South Korea Q2 GDP Advances 0.7%

South Korea's gross domestic product gained a seasonally adjusted, annualized 0.7 percent on quarter in the second quarter of 2016, the Bank of Korea said in Tuesday's preliminary reading.

That beat forecasts for an increase of 0.6 percent following the 0.5 percent gain in the first quarter.

Real gross domestic income fell 0.4 percent.

On the expenditure side, private consumption was up 0.9 percent, as expenditures on durable goods and semi-durable goods like clothing increased. Construction investment expanded 2.9 percent, centering on residential building construction.

Facilities investment jumped 2.9 percent, as investment in transport equipment expanded. Intellectual property products investment added 1.1 percent, centering on software investment.

Exports were up by 0.9 percent, fueled by gains in semiconductor, petroleum and chemical products. Imports gained 1.9 percent, mainly on increases in crude oil and automobiles.

On the production side, agriculture, forestry & fishing production fell 6.1 percent, as farming and livestock industries declined.

Manufacturing added 1.3 percent, centering on automobiles and chemical products. Utilities were up 0.3 percent on electricity production increases.

Construction added 0.5 percent, centering on residential building construction. Services collected 0.5 percent, led by growth in wholesale & retail trade, food services & accommodations and cultural & other services. Those gains offset a decline in transportation & storage, real estate & leasing.

On a yearly basis, GDP climbed 3.2 percent - also topping expectations for 3.0 percent and up from 2.8 percent in the three months prior.

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