October Production Down 1.5%... Largest Decline in 30 Months (Update)

[Asia Economy Sejong=Reporters Kim Hyewon and Son Seonhee] Production in October decreased by 1.5%, continuing a decline for the fourth consecutive month.

According to the industrial activity trends for October released by Statistics Korea on the 30th, the October total industry production index (seasonally adjusted, excluding agriculture, forestry, and fisheries) stood at 115.4 (2015=100), down 1.5% from the previous month.

Total industry production has declined for four consecutive months following July (-0.2%), August (-0.1%), and September (-0.4%). This is the first time in 29 months since January-May 2020 that this indicator has fallen for four straight months. The rate of decline was also the largest in 30 months since April 2020 (-1.8%).

By sector, production in manufacturing and other mining and manufacturing industries decreased by 3.5%. Service industry production also dropped by 0.8%, marking the largest decline in 22 months since December 2020 (-1.0%).

The retail sales index (seasonally adjusted), which reflects consumption trends, was 120.4 (2015=100), down 0.2%. Consumption had decreased for five consecutive months from March (-0.7%) to July (-0.4%), briefly rebounded in August, but returned to a downward trend in September and October.

Facility investment remained flat compared to the previous month (0.0%). Construction output increased by 3.8% due to growth in building and civil engineering works.

The coincident index, which indicates the current economic situation, was 102.4, unchanged from the previous month. The leading index, which forecasts future economic conditions, fell by 0.1 points to 99.2, marking a decline for four consecutive months.

Oh Woonseon, Director of Economic Trend Statistics at Statistics Korea, stated, "Mining and manufacturing production was sluggish, and service industry production also declined as retail sales faltered, showing a weakening trend in economic recovery improvement."