[Asia Economy Sejong=Reporter Dongwoo Lee, Sejong=Reporter Seungseop Song] Production in December last year, when the economic slowdown deepened, decreased by 1.6% compared to the previous month. This is the largest decline in 32 months since April 2020 (-1.8%).
According to the 'December 2022 and Annual Industrial Activity Trends' announced by Statistics Korea on the 31st, total industrial production (original index, excluding agriculture, forestry, and fisheries) in December last year decreased by 1.6% compared to the previous year. Production in mining and manufacturing, including manufacturing, fell by 2.9%, and service industry production decreased by 0.2%, respectively.
Production showed the largest decline in 32 months since April 2020 (-1.8%). Although production increased in semiconductors (4.9%) and others, production decreased in automobiles (-9.5%), electronic components (-13.1%), and others, which widened the decline.
The retail sales index increased by 1.4% compared to the previous month. Durable goods such as telecommunications equipment and computers decreased by 2.7%, but nondurable goods such as cosmetics and semi-durable goods such as clothing increased by 0.1% and 11.1%, respectively, resulting in an overall increase for the first time in four months.
On the other hand, facility investment decreased by 7.1%. Investments in machinery such as special industrial machinery (-7.8%) and transportation equipment such as automobiles (-4.8%) all declined. Construction performance decreased by 9.5% compared to the previous month due to declines in building (-10.9%) and civil engineering (-5.1%).
The coincident index of cyclical fluctuations, which indicates the current economy, fell by 0.9 points compared to the previous month, and the leading index of cyclical fluctuations, which predicts the future economy, also fell by 0.5 points.
On the other hand, industrial production, consumption, and investment last year increased by 3.3%, 0.2%, and 3.3%, respectively, compared to the previous year, showing a 'triple increase' for two consecutive years. This is interpreted as the base effect continuing for the second year following 2021 due to the economic downturn caused by COVID-19 in 2020.
The total industrial production index last year (excluding agriculture, forestry, and fisheries) increased by 3.3% compared to the previous year. Production in mining and manufacturing, including manufacturing, increased by 1.4% compared to the previous year, and service industry production also increased by 4.8%.
The retail sales index increased by 0.2% compared to the previous year, and facility investment also increased by 3.3%.
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