Manufacturing Revival... 3.3% Increase in Domestic Demand in Q1

Intermediate goods such as raw materials for semiconductors and car parts also rise by 3.6%

[Sejong=Asia Economy Reporter Moon Chaeseok] South Korea's manufacturing industry, which had recorded negative growth for three consecutive years until last year, showed signs of revival in the first quarter. The domestic supply of intermediate goods used as raw materials for semiconductors and automotive parts also increased, indicating some recovery from the impact of COVID-19.

According to the manufacturing domestic supply trend announced by Statistics Korea on the 10th, the manufacturing domestic supply index for the first quarter was 105.6 (2015 base 100), up 3.3% compared to the same period last year. It had been negative from the second to fourth quarters of last year but showed a recovery trend. This index represents the value of manufacturing products produced domestically or imported from abroad and supplied domestically. It is an indicator showing domestic market trends.

Notably, the domestic supply of intermediate goods, which are used as raw materials in light industries such as semiconductors and automotive parts, increased again. The intermediate goods index rose 3.6% year-on-year to 101.5. The domestic supply of final goods increased by 2.8%, with both consumer goods (4.7%) and capital goods (0.2%) supplies rising. The capital goods figure is significant as it includes semiconductor manufacturing equipment.

By industry, other transportation equipment decreased by -49.4%, while machinery equipment (15%) and automobiles (13.1%) increased.

The import share ratio of manufacturing domestic supply was 28.5%, up 1.6 percentage points compared to the same period last year.