[Asia Economy Reporter Kwangho Lee] Last month, industrial production remained at the same level as the previous month due to sluggish production in manufacturing industries such as semiconductors and electronic components. Retail sales turned negative (-) for the first time in three months, and investment, which had been on the rise, also faltered.
According to the "October Industrial Activity Trends" released by Statistics Korea on the 30th, total industrial production (seasonally adjusted, excluding agriculture, forestry, and fisheries) remained flat compared to the previous month. Production increased in the service sector but decreased in manufacturing and construction.
Service sector production rose 1.2% compared to the previous month, continuing an upward trend for two consecutive months following September's 0.3% increase. Due to the easing of social distancing measures, accommodation and food services surged by 13.3%. Information and communication also grew by 2.6%, driven by increases in game and system-related software development and supply, as well as telecommunications.
On the other hand, manufacturing production decreased by 1.2% compared to the previous month. Semiconductors fell by 9.5% due to the base effect following recent increases in memory semiconductors such as DRAM, and electronic components shrank by 2.6% due to reduced production of LCD-related items such as IT LCDs and TV LCDs.
Retail sales, which indicate consumer trends, declined by 0.9%, showing a downward trend for the first time in three months. This was due to a decrease in sales of non-durable goods (-5.7%) such as food and beverages, following the easing of social distancing and increased dining out.
Facility investment decreased by 3.3% compared to the previous month, turning to a decline after two months. Construction performance, which reflects completed construction work, slipped by 0.1% compared to the previous month. Construction orders (current) also dropped significantly by 17.3% compared to a year ago.
The coincident index of economic indicators, which shows the current economic situation, rose by 0.5 points from the previous month to 98.3. The leading index of economic indicators, which forecasts future economic conditions, increased by 0.4 points from the previous month to 101.8.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
